=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/04/13/f= inancial0844EDT0034.DTL --------------------------------------------------------------------- Tuesday, April 13, 2004 (AP) Italian government reportedly readying decree to rescue Alitalia (04-13) 05:44 PDT ROME (AP) -- The Italian government is reportedly drawing up a series of measures, including layoffs and tax reductions, aimed at rescuing the struggling state-run airline Alitalia. On Thursday, government ministers will meet to draw up a decree finalizi= ng the state's role in rescuing the money-losing carrier, Corriere della Sera and other Italian newspapers said Tuesday. Although details of the plan were not immediately available, the decree = is expected to include a scaled-down version of a previous plan drawn up by Alitalia management, which would have cut between 2,000 and 2,500 jobs through measures such as early retirements and temporary layoffs. This plan was scrubbed after union representatives judged it to be too harsh. In addition to a reduced number of layoffs, the government plans to help Alitalia by reducing taxes on air-fuel and overfly rights and reorganizing the Italian airport system, the reports said. In March, Italy's flagship carrier stated it lost 511 million euros ($622 million) in 2003 before taxes and one-time charges compared to a loss of 260 million euros ($316 million) in 2002. In its efforts to save Alitalia, the government, which holds a 62 percent stake in the company, will have to be careful not violate European Union competition rules on state aid. Fueled by the reports of government intervention, Alitalia's stock was up 4.7 percent in trading Tuesday. ---------------------------------------------------------------------- Copyright 2004 AP