MILAN (AFP) - Alitalia management and unions representing cabin crews agreed to parts of a deal that, if finalised, could allow approval of an overall rescue plan, union sources said.
Fighting for its survival, the state-owned airline has already come to terms with pilots and ground personnel on measures to keep it in business.
Alitalia directors are to convene Monday to give official endorsement to a rescue package that would enable the company to draw on a 400-million-euro (487-million-dollar) government-backed bridging loan that is critical to its future.
On Friday, unions representing flight attendants agreed to increase variable components of their pay, to raise the annual number of flight hours to 900 from 630, and to calculate daily allowances according to actual time on the job.
"We are negotiating to reduce the number of job cuts, to limit them to 700," rather than the 1,050 sought by Alitalia directors, Franco Tocci of the Uil union told Ansa news agency.
Earlier in the day, management had rejected a union proposal for a two-stage agreement that would begin with an increase in flying time and a reduction in on-board staff followed by the renewal -- within two months -- of their labor contract.
Union sources said management had given them until Friday evening to reach an agreement, and had provided a protocol accord of which several points had already been approved.
"It's an unusual method, but we are studying the document and as we find points of convergence we sign them," Tocci said.
Patrizio Corvi of the Roman Catholic Fit-Cisl union told the economic news agency Radiocor that the two sides' positions were fairly close.
Alitalia is trying to save 315 million euros in reduced labor costs through a restructuring plan that extends from 2005-2008.
On Wednesday, the airline reached an accord with pilots calling for increased flying time, a cut in the number of pilots assigned to certain routes and the elimination of 289 jobs.
On Thursday, the carrier said it had reached a wage-freeze agreement with ground personnel in exchange for a reduction in the number of job cuts to 2,500 from 3,500.
"The company and the unions hope the state will be able to arrange 'social shock absorbers' for the jobs that will be eliminated," Alitalia added in a statement.
But the Italian government, which owns 62.39 percent of Alitalia, says it will only intervene once a global accord has been concluded.
The state wants to reduce its stake to less than 50 percent once the rescue plan is implemented.
Alitalia incurred losses of 330 million euros in the first half of 2004, after posting a full-year loss of 519.2 million euros for 2003.