Bailout of Alitalia back on cards

Italy's government told Alitalia's unions it had convinced an investor group to revive its offer to buy parts of the bankrupt airline and the country's biggest union agreed to back the rescue.

The developments were the first breakthrough in a flurry of talks over the past week to salvage the takeover by Italian investor group CAI -- which withdrew its offer over union anger -- before the bankrupt airline loses its licence to fly.

The deal must still win the backing of pilot and flight assistant unions which had bitterly opposed the deal, but they too signalled a possible change in stance by convening a meeting of their members citing "new and interesting facts".

Unions gathered to hold talks at the prime minister's office on Thursday morning, hours before Alitalia's bankruptcy commissioner must present a rescue plan to aviation authorities or have its operating licence revoked.

The Cgil union -- Italy's biggest -- has signed on to the preliminary framework of the deal, its head Guglielmo Epifani told a news conference. Media reports said the decision came after CAI agreed to concessions on salaries and jobs.

Hopes the pilot and flight staff unions could also be persuaded to change their mind rose after they held talks with Prime Minister Silvio Berlusconi's top aide late on Wednesday.

Top officials from two major pilot unions -- who were quick to attack CAI's rescue plan last week -- declined to comment after the late-night talks, calling it a "delicate moment".

Four unions representing pilots and flight staff have convened a meeting of their members for Thursday afternoon, the head of the Avia flight assistants union Antonio Divietri told reporters.

He said indications that an industrial partner will likely arrive soon "changed the situation", in an indirect reference to reports that Air France-KLM was in talks to join the CAI consortium with as much as a 25 percent stake.

Air France-KLM is expected to hold a board meeting on Thursday, which could discuss the developments at Alitalia. The French carrier has in the past said it is willing to take a minority stake in Alitalia if it can return to profit.

The attempted sale of Alitalia, which has sputtered on for 19 months, has made a mockery of previous promises that a deal to settle the airline's fate is around the corner.

An initial auction to sell the carrier failed when all bidders pulled out, while a subsequent takeover by Air France-KLM fell apart due to union opposition.

This time, Alitalia risks having its flights grounded next week if it is unable to present a rescue plan or declare it has enough funds for the next three months -- which the bankruptcy commissioner has already said is a luxury it does not have.