=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/2004/04/23/f= inancial1012EDT0064.DTL --------------------------------------------------------------------- Friday, April 23, 2004 (AP) Italian government to approve emergency decree to help Alitalia AIDAN LEWIS, Associated Press Writer (04-23) 07:12 PDT ROME (AP) -- Premier Silvio Berlusconi's government will approve an emergency decree next week to help struggling national airline Alitalia, labor minister Roberto Maroni said Friday. Maroni, speaking to reporters after a Cabinet meeting, declined to give details of the aid. The minister indicated that the decree would be aimed at the entire airline sector to avoid violating European Union rules on state aid to companies. Alitalia is by far the predominant player among Italian airline companies. The aid is expected to include tax cuts on fuel and air rights, as well = as financing for temporary layoffs. Italian newspapers Friday reported that the plan could involve some 1,100 layoffs, although many of those employees are expected to be called back to work over the next few years. The decree is also expected to give the airline sector 120 million euros ($142 million) in aid in 2004 and 200 million euros ($238 million) in 2005. Most of the money would go to Alitalia to help stave off possible bankruptcy. State-controlled Alitalia last achieved operating profit in 1998 and is estimated to be losing about 50,000 euros ($60,000) an hour. It is trying to improve its financial health in hopes of joining an alliance formed by a planned merger of Air France and KLM Royal Dutch Airlines. Analysts say such an alliance is key to Alitalia's survival. "This is certainly good news for those who, like us, believe that Alital= ia should be guaranteed, with every effort, a future as a great international company," Maroni said. Maroni said that the absence of Finance Minister Giulio Tremonti, who was out of the country, meant no agreement could be reached Friday. But he denied widely reported divisions within the center-right coalition over the planned aid. The Italian treasury, which owns 62 percent of the carrier, has called on Alitalia to do what is needed to guarantee continued operations regardless of what the government does. The airline has been attempting its own rescue plan based on laying off some of its staff, but its efforts have been thwarted blocked by labor unions, which have called numerous strikes. The Alitalia board has said it will meet Tuesday to make a final decision on the plan. ---------------------------------------------------------------------- Copyright 2004 AP