Alitalia will lose its operating license if a special administrator making a last-ditch attempt to sell the airline does not give Italy's aviation authority a credible new offer or a cost- cutting plan by Thursday.

By Caroline Brothers Alitalia appeared to inch back from the verge of bankruptcy Monday as four of its nine unions agreed on the outline of a business plan for the carrier, but negotiations were to continue on the thornier challenge of a new labor contract.

By Caroline Brothers The Italian government was making some progress Sunday in brokering a deal that would stave off bankruptcy at Alitalia, the Italian flag carrier, after fears arose that the airline might have to ground flights because suppliers would cut off its jet fuel.

By Caroline Brothers Complaining that Alitalia's unions were refusing to make concessions, a group of investors threatened Friday to pull out of the government-supported plan to save the flag carrier, forcing officials in Rome to scramble in a last-ditch effort to keep the airline flying.