Italy's government is scrambling to salvage Air France-KLM's collapsed deal to buy Alitalia, promising to keep the airline flying despite a looming cash crisis.
The state-controlled carrier, whose fate has become a top campaign issue ahead of Italy's general election in 10 days time, has said its cash will run out in a few months unless a new owner steps in to pump more money into its coffers.
The Italian government said in a statement that it was committed to ensuring Alitalia stayed in operation, while the economy ministry overseeing its sale urged the airline's board to take urgent action to ensure it keeps flying.
Alitalia has been hit by tough competition, soaring fuel prices and frequent strikes. It has posted a profit only four times in the past 15 years.
The board of Alitalia, in which the Italian state has a 49.9% stake, was scheduled to meet today. Its chairman Maurizio Prato quit on Wednesday, saying the company was cursed.
Some unions and politicians remained hopeful the airline could avert bankruptcy and resume talks with Air France-KLM, which abandoned negotiations with unions on Wednesday after rejecting their demands aimed at saving more jobs.
The Italian government said it would verify whether the French carrier's decision to ditch the deal was final, while Alitalia management summoned unions for a meeting on Friday.
