Alitalia to sign 3-way deal with Air France, KLM = = = = Monday September 29, 3:51 PM EDT = (Adds background, Alitalia chairman quote) ROME, Sept 29 (Reuters) - Alitalia (AZPIa) said on Monday its board had g= iven its chief executive the go-ahead to sign a three-way deal with Air F= rance and KLM that could eventually create Europe's largest airline. "The board has mandated Chief Executive Officer Francesco Mengozzi to sig= n a three-way deal with the CEOs of Air France and KLM in the next few ho= urs," Alitalia said in a statement. Loss-making Alitalia, which has a commercial partnership and a small cros= s-shareholding with Air France, is seen to have stepped up its efforts ov= er the past few weeks to be part of any consolidations in the European ai= rline sector. The board of Air France (AIRF) was set to vote on Monday on a tie-up with= Dutch carrier KLM (KLM). The two airlines have held alliance talks for t= he past year on a deal that could lead to the first cross-border merger o= f leading European airlines. = Should Alitalia be left out of any link-ups, its troubles would mount, an= alysts say. Sources close to the company have said the airline is set to = cur 3,000 jobs as part of a do-or-die restructuring plan. A three-way alliance would have a big impact on the shape of the internat= ional airline business and open the way to an eventual merger to create E= urope's biggest airline. "The entry of KLM into the SkyTeam alliance is the first brick in the con= struction of a great European group formed of Alitalia, Air France and KL= M," Alitalia Chairman Guiseppe Bonomi told reporters. = =A92003 Reuters Limited. = Roger EWROPS