Meridiana is asking unions to agree to 900 job cuts - nearly half its workforce - as part of a planned partnership with Qatar Airways.
Sardinia-based Meridiana - owned by the Aga Khan is under a government-sponsored restructuring plan.
The holding company behind Meridiana plans to complete a deal with Qatar Airways in the first half of 2016 after signing a memorandum of understanding earlier this month.
Qatar Airways will invest fresh money into a new company that will manage the airline, in which it will hold a 49 percent stake, Meridiana Chairman Marco Rigotti said after a meeting at the Italian industry ministry.
The Aga Khan's fund will own the remaining 51 percent, Rigotti said, adding he hoped to strike a deal with unions by March over cuts to Meridiana's current 2,000-strong workforce.
Industry Minister Federica Guidi described a deal with Qatar as "the only option to relaunch and strengthen Meridiana", the ministry said in a statement.
Workers at Meridiana, which flies to and from the island of Sardinia and other destinations in Italy and abroad, have been in a state-funded layoff initiative for over a year.