The Italian government is desperately trying to save its failing national airline, holding new crisis talks with unions and possible investors. There is a warning that if a deal is not struck, Alitalia will have to ground flights from Monday because it cannot afford to pay for fuel.

Emergency talks have taken place throughout the weekend in the office of the Prime Minister, Silvio Berlusconi, and resumed on Sunday night.

UIL union official Giuseppe Caronia said: “We’re conscious of the fact there’s no alternative, so we’re trying to work along those lines. And we do think there is reason to be moderately optimistic.”

Talks over a possible rescue plan broke down on Friday when unions would not agree to likely wage cuts and layoffs. A consortium has shown interest in the airline, but says it only wants to buy the profitable assets, provoking anger among Alitalia workers.

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