Air France-KLM to revise Alitalia plan: sources

By Deepa Babington and Alberto Sisto

ROME (Reuters) - Air France-KLM will consider taking on Alitalia's maintenance workers and review plans to shut its cargo unit to appease unions ahead of a Wednesday deadline to win their support, union sources said on Tuesday.

Air France-KLM's planned takeover, struck two weeks ago by Alitalia (AZPIa.MI: Quote, Profile, Research) to stave off bankruptcy, risks falling apart as unions and Milan's airport operator fight plans to cut jobs, while top politicians attack it for denting national pride.

But in a sudden change of tune, centre-right leader Silvio Berlusconi, tipped to become Italy's next prime minister, softened his opposition to the deal he has previously called "humiliating" and a French attempt to "colonize" Alitalia.

Berlusconi, who has promised a rival Italian counterbid will emerge, said he remained skeptical the Air France-KLM deal would be concluded but that he could accept it if it was one of "equal dignity" and maintained Alitalia's Italian identity.

Alitalia postponed to Wednesday a meeting between unions and Air France-KLM's (AIRF.PA: Quote, Profile, Research) top brass, which Alitalia has set as the new deadline by which unions must get on board or risk the deal being scrapped. The talks will begin at 6 a.m. EDT.

Under a revised plan being discussed by Air France-KLM CEO Jean-Cyril Spinetta and Alitalia's top management, the French carrier is considering taking on workers from Alitalia's Atitech maintenance unit, three union sources briefed on the plan said.

The Franco-Dutch carrier will also have an independent adviser evaluate next year its plan to shut down Alitalia's cargo unit in 2010, the sources said.

The carrier also proposed grounding three fewer airplanes than previously planned, and bringing forward plans to buy one new aircraft a year, moves that would preserve the jobs of 160 flight assistants and 42 pilots, the sources said.