Alitalia has rarely made a profit

Savino Pezzotta's comments came before talks between Alitalia's management and the unions resume on Tuesday.

Meanwhile, Alitalia's share price fell by 5% to a new low on Tuesday after it again said it only had enough cash to last until the end of September.

A third of its 22,000 staff could lose their jobs under the rescue plan.

"We're looking to save as many jobs as possible," said Mr Pezzotta, head of the Cisl union.

"We'll talk (with Alitalia) to find non-traumatic solutions."

Government calls

Alitalia made a net loss of 520m euros ($628m; �350m) in 2003 after making a profit the year before and the airline's board stressed the seriousness of the company's financial woes on Monday.

From the market's point of view, it's set for bankruptcy. Everyone is selling Trader in Milan

It reminded the unions that it needed their agreement on its restructuring plans in order to secure a guarantee from the Italian government for a 400m euro bridging loan.

"The payment of this credit is conditional on reaching a positive agreement with the unions on the industrial plan by the non-negotiable date of September 15," it said in a statement.

The talks between senior managers at Alitalia and the union leaders come a week after the Italian government warned that if the unions did not compromise, Alitalia could go out of business and all jobs would be lost.

Bleak outlook

Deputy Prime Minister Gianfranco Fini earlier called on both sides to adopt a "responsible attitude" in their negotiations over the state-owned airline's future.

"Alitalia can and must be saved," he said, adding that it was "essential for the management to put together a real industrial plan" that was more than "just a series of staff cutbacks".

Analysts said the future of Alitalia was now a black and white issue.

"Either they reach a deal with the unions, or they close," one Milan trader said.

"From the market's point of view, it's set for bankruptcy. Everyone is selling."