Italian flag carrier Alitalia looks to have secured its short-term future after banks agreed to underwrite a new share issue. But concerns about its long-term prospects remain after a deal was struck with unions which will mean that a proposed 2,500 cut in its workforce is ditched. Alitalia is planning a €1.43 billion ($1.27 billion) recapitalisation, split between the issue of new shares and convertible bonds. In addition, the carrier will use the €370 million of state aid authorised by the European Commission in 1997, but subsequently blocked until the Italian government won a court case against Brussels last year. Alitalia chief executive, Francesco Mengozzi says the share sale will take place soon after the shareholders meeting in May, provided that approval is granted. This cash boost comes on the back of a net loss of €907 million last year.