Word of Friday's decision increased the price of Alitalia's stock by more than 7 percent for the day, reported ANSA, the Italian news agency.

Alitalia CEO Maurizio Prato said his company is "on its last legs" and needs a quick decision in the negotiations with Air France-KLM, Europe's largest airline, ANSA reported.

The Italian treasury, which holds a 49.9 percent stake in Alitalia, would become a shareholder in the new carrier, ANSA reported, noting Air France-KLM has said it plans to make an offer for 100 percent of Alitalia through a share-swap arrangement.

An Air France-KLM takeover is supported by Alitalia pilot and flight staff unions but opposed by ground staff unions, in part because of Air France-KLM's intention to downsize Milan's Malpensa airport from hub status in favor of Rome's Fiumicino airport, ANSA said.