Alitalia is set to run out of cash soon

The Italian airline has to secure a deal with unions in order to benefit from a $490m (�274m) government loan.

Under the deal, 900 cabin crew jobs will be lost - fewer than the 1,050 sought by the airline.

But the number of cabin crew on medium-haul flights will be cut from four to three, and they will fly more hours.

Alitalia is set to run out of cash within the month, and is anxious to seal a deal before a board meeting on Monday.

The carrier has already agreed a settlement with ground staff and pilots. Cabin crew are expected to sign their part of the agreement on Saturday.

The deal with ground staff paved the way for some 2,500 job cuts, while pilots agreed to work longer hours for less pay.

A total of 3,700 jobs will be cut across the airline, which has a workforce of 20,700. The company had originally sought to shed 5,000 posts.

Turning point

Alitalia has struggled financially since the 11 September attacks and is said to be losing $60,000 an hour.

Unions said that the agreement on pilots' conditions was a "turning point", adding that they were "certain" a deal on other Alitalia staff was possible.

So far, negotiations have not touched on the issue of splitting the company into two separate businesses, one of which would focus on flight operations and the other on ground operations. Privatisation could follow.