Alitalia boss Giancarlo Cimoli was able to turn Italy's railways around

The change is a key part of a rescue plan for Alitalia, which is losing as much as $1m (815,000 euros) a day.

Staff have previously agreed to job and pay cuts, while the government has said it will provide a 400m euro loan.

Eight unions signed up after getting further state assurances ; the ninth is expected to consent later on Friday.

Alitalia plans to split in two parts: AZ Fly will run flights, while AZ Services will handle the ground services portion of the business.

Unions had initially been concerned that the split would lead to more job losses than the 3,700 already tabled.

The Italian state will keep a holding of at least 30% in AZ Fly and retain a controlling 51% stake in AZ Services until at least 2008, a move which has reassured workers.

Without a deal, the Italian flag carrier risks running out of money.

Chief executive Giancarlo Cimoli, who has been credited with rescuing the Italian state railway, said that the firm would have $20m of cash left by the end of September.