No deadline in Alitalia rescue talks with unions: reports

ROME (AFP) - The Italian government will allow talks with unions on a rescue plan for loss-making Alitalia to go on indefinitely, allowing a second deadline to expire on Friday, media reports said.

"Negotiations continue (and) the hands of the clock have been stopped," an official was quoted as saying after no agreement emerged by 1:00 pm (1100 GMT), the deadline set Thursday for unions representing pilots and flight attendants to embrace a plan accepted by the bulk of Alitalia's workforce.

The new deadline was set when the groups failed to agree by a first cutoff on Thursday evening.

A fifth union of the nine representing the near-bankrupt airline's workforce signed a government-brokered accord on Friday.

Italy's powerful CGIL union dropped its objections to the rescue plan on Thursday, prompting the Italian Air Company (CAI) investor group to revive its billion-euro (1.45 billion dollar) offer for the flag carrier.

The deal could go ahead without all unions on board, Labour Minister Maurizio Sacconi told the ANSA news agency. Unanimous approval "would be important ... but I think CAI can pursue its course in any case," he said.