Alitalia needs "substantial financial support" if it is to avoid bankruptcy, its directors said after a board meeting this week.
In a statement issued on Tuesday (April 8), the airline said that "only by means of such support will it be possible to regain the required confidence to pursue the Company's business plan and hence to confirm continuity of operations."
The directors said the airline, which is about 1.37bn in debt, said its cash in hand and short term credits amounted to 170m on March 31.
Since then a further 69m credit had been received on April 2.
The statement added: "This financial situation makes it possible to pursue further short-term initiatives to re-establish - with due urgency - a favourable scenario for the company's continuity, which was disturbed by the interruption of union negotiations on April 2."
The company said it would provide the "competent authorities" with all the necessary information in a bid to raise the cash needed.
The directors also noted the meeting due to take place today (April 10) between the Italian government and the unions and the "positive note" of the statement from Air France KLM after it broke off talks with Alitalia unions over its planned take over of the near bankrupt airline.
The AF KLM statement amounted to a take it or leave it ultimatum to the unions.
It said: "The Board of Directors took note of the breaking off of talks, and understood and approved the reasons for this situation.
"It was considered that the plan submitted by AF/KLM on 14 March and subsequently amended during negotiation meetings on 18, 25, 31 March and 1 and 2 April is the only one that would enable Alitalia to return to profitable growth within a rapid timeframe.
"It is now up to Alitalia, its employees and unions representing staff to say how they view the future of their airline."
Talks between AF KLM and the Alitalia unions broke down on April 2 over the AF KLM plan to reduce services from Malpensa Airport near Milan and make about 2,000 workers redundant.
The breakdown in talks led to the resignation of Maurizio Prato, Alitalia's chairman who had backed the bid and left the airline on the verge of bankruptcy.
The Alitalia board has since appointed Aristide Police as its new chairman who took over at Tuesday's meeitng.
The future of the airline is further complicated by a forthcoming Italian general election.
The outgoing government had backed the sale to AF KLM and agreed to sell its 49.9% stake in Alitalia to that airline.
But Silvio Berlusconi, who is predicted to win the general election on April 13-14, has said he would block any sale to AF KLM and also open Alitalia's books to rival bidder Air One, an Italian low cost carrier.
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