Air France and Lufthansa vie to be partners

| Tue, 09/30/2008 - 03:37

Air France and Lufthansa are now battling between themselves over who will be the partner of the 'new' Alitalia, according to the head of a group of Italian investors set to buy the national carrier's flight operations, Piaggio Chairman Roberto Colaninno.

Speaking on a RAI state TV talk show, Colaninno recalled that ''when I decided to join the consortium of investors on August 18 I knew that Alitalia's value would jump once we struck an accord with unions''.

''At the time I knocked on Lufthansa's door but it was locked shut. Now they're battling to be our partner,'' he added.

Colaninno chairs Compagnia Aerea Italiana (CAI) - a government-sponsored consortium of Italian investors which offered to buy Alitalia's flight operations.

The last of Alitalia's main unions agreed to back CAI's business plan for a 'new' Alitalia on Monday.

As a result of changes the government made this summer to Italy's bankruptcy laws, Alitalia's flight operations are to be spun off and sold to create a new national carrier.

The airline's non-profitable businesses, including maintenance and cargo activities, are to be liquidated or sold to help pay back Alitalia's debts of over one billion euros.

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