Shares in Alitalia were suspended ahead of a statement as the Italian government is expected to discuss today whether to grant Alitalia a loan of €400 million ($483.4 million) while the airline hammers out a new business plan to save it from bankruptcy.
The bridging loan, which could be crucial to the airline's survival, is on the agenda of a regular cabinet meeting, said a source.
Alitalia said in May it expected the government to provide a loan, with media speculating the amount would be €500 million.
The European Commission will have to scrutinise any government help to the troubled airline, which is 62 per cent state-owned, to ensure it does not break an EU ban on state aid to airlines.
Under European Union rules governments can grant temporary loans to keep ailing companies in business for a short time as they put together rescue plans.
In May the government installed a new management to run the airline - the third in as many months - after strikes by workers fearing wholesale job losses crippled the carrier for several days.
The rescue plan involves splitting off flight operations and ground services into separate units and a capital increase in which the airline hopes the government will participate.
