ROME (AFP) - Labor and management at Italian state airline Alitalia reached an agreement in principle on reorganizing the troubled carrier that leaves the government with at least a 30 percent stake in the company.
The state's current holding of 62.37 percent would not fall below 30 percent, Alitalia said, adding that the company's re-capitalization and privatization planned for early next year would be based on the participation of institutional investors.
In its new shape, Alitalia would keep its name and its responsibility for flight operations, transferring ground activities to a new venture, AZ Servivce, in which it will hold an initial stake of 100 percent.
That holding would eventually be cut back to 51 percent.
A state-backed shareholder, which could be the holding company Fintecna, would control the remaining 49 percent.
The reorganization deal was endorsed in principle by eight unions, with the ninth waiting to consult its membership before giving its approval.
The government later Friday was expected to issue a decree on the "social shock absorbers" designed to help workers affected by company plans to shed 3,700 jobs, a step Alitalia says is critical to its restructuring and recovery.
The accord signed Friday is aimed at meeting union demands for guarantees that AZ Service would remain under state control. It also targets union insistence on preserving the unity of the company and the status of its employees.
But at the same time it should satisfy management and the Italian government in their commitment to privatizing Alitalia and to attracting fresh capital to finance its recovery. Some reports, as yet unconfirmed by Alitalia, have spoken of capital in the amount of two billion euros (2.5 billion dollars).
The company "was on the verge of bankruptcy and we have avoided it by setting the basis for its rescue," said Guglielmo Epifani, head of the CGIL union.
"But everything is not resolved. We now have to have a halt to mistakes made by the company and the government."
Deputy Transport Minister Mario Tassone hailed what he called "a good agreement" and said it was now necessary to carry out a complete reorganization of the air transportation sector, including a review of airport taxes and administrative responsibilities.
Alitalia is soon expected to have access to a bridging loan of 400 million euros, issued by a bank and backed by the state, that should keep it aloft until its re-capitalization.
Company chairman Giancarlo Cimoli warned Thursday that the treasury would be "close to zero end-September."
Cimoli, who had once spoken of breaking ties to the Air France-KLM alliance, now says he wants to maintain Alitalia's association with Air France, albeit with a re-negotiation of its commercial partnership.
News of Friday's accord heartened investors. Alitalia shares were up 3.44 percent at 0.29 euros in midday trade in Milan.