'Air France interested'

| Thu, 09/25/2008 - 03:36

Air France is interested in Alitalia, the former CEO of the failing Italian airline said Wednesday.

Piero Mengozzi, a merchant banker who tried to turn around the chronically loss-making carrier from 2001 to 2004, told government mediator Gianni Letta of the French giant's interest.

Mengozzi, a Lehman Brothers manager who is an Air France consultant, reportedly went to the Italian premier's office to convey the interest of Air France chief Jean-Cyril Spibetta.

Air France walked away from a takeover deal earlier this year due to union resistance.

An Italian consortium, CAI, was set up to rescue Alitalia but withdrew its offer for the same reason last week.

The government voiced hope Wednesday that CAI and the unions will resume talks before Alitalia's operating license is withdrawn before the end of the month.

If they forge a deal, most pundits see German carrier Lufthansa as the likeliest strategic partner in the longer term.

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