Alitalia talks may drag beyond weekend

Talks between Alitalia's management and unions to agree hefty job cuts and longer hours to save the airline from collapse look…

Talks between Alitalia's management and unions to agree hefty job cuts and longer hours to save the airline from collapse look set to drag on into the weekend.

The delay - now well past a September 15th deadline Alitalia initially set to cut a deal with workers - raises doubts over the likely order of events as the airline scrambles to finalise a rescue plan before its cash runs out at the end of the month.

Both sides wanted to finish talks last night, but a source said tricky negotiations and the fact that the government would not be available to talk about help for sacked workers before next week meant things could drag on until then.

"The agenda of the prime minister's office for the weekend is full. The meeting with the government will probably be on Monday or Tuesday," said the source.

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Pilots and ground crew have already agreed to make sacrifices over working hours and benefits in order to reduce the 5,000 job cuts initially sought by Alitalia.

But contract talks with cabin crew through Thursday night failed to provide a breakthrough. "There was no deal last night in the talks," a union source said early on Friday. "The contract negotiations will resume again today."

Chief executive Mr Giancarlo Cimoli had earlier called a board meeting for Monday where the final plan - which includes splitting the airline into two separate companies - was due to be sealed.

That would allow him to request access to a €400 million emergency loan that would enable the airline to keep paying salaries and stay in business pending the full restructure.

But unions have insisted that before they sign off on the plan they must have assurances from the government on measures to ease the hardship on the thousands of people who face being laid off. The state owns a 62 per cent stake in Alitalia.