A merger between Air France-KLM and Alitalia is in the interests of both airlines and should move ahead as quickly as possible, according to Giovanni Bisignani, CEO and general manager of the International Air Transport Association (IATA).
It is essential that exclusive talks between the two carriers conclude quickly, he added, because Alitalia ''is in a situation of high financial risk''.
Speaking on the sidelines of an IATA conference on air cargo, Bisignani said the desire of many to keep Alitalia Italian ''made sense 20-30 years ago but today the rules of the game in the air transport sector have changed and Alitalia needs to be run as a private company''.
In an attempt to quell fears over Alitalia losing its 'Italian character,' Bisignani recalled how after Swiss Air went bankrupt and was sold to Lufthansa ''it retained its status as national carrier and became a model in Europe for efficiency and profitability''.
It was Bisignani's opinion that Alitalia ''lost a year in the government's attempt to privatize the airline through an auction. The auction had no hope of succeeding because too many conditions were imposed to acquire an airline in such a dramatic situation''.
In regard to Alitalia's decision to slash international services from Milan's Malpensa airport and shift these flights to Rome, Bisignani said ''this was a decision Alitalia should have made several years ago''.
Bisignani recalled that when he was Alitalia's CEO, in the late 1980s, the national carrier told the government at the time that the only way Malpensa could have success would be to transfer there all flights from Milan's other airport, Linate, with the exception of a Milan-Rome shuttle service.
Furthermore, the development of Malpensa would depend on not allowing other airports in the region, especially Linate, to expand service and thus rival the new hub, he added.
Alitalia's then-mangement also told the government that Malpensa's success would depend on building an efficient and fast public transport link with the center of Milan before initiating service there, Bisignani said.
The Italian government decided at the end of 2006 to sell most if not all of the Treasury's 49.9% controlling stake in Alitalia.
After an attempt to auction Alitalia failed last summer, the government decided that Alitalia should find a buyer and with it negotiate the sale of the Treasury's stake.
Last December Alitalia's board unanimously chose Air France-KLM because it said it offered the best guarantees for the national carrier's future.
Air France-KLM said it will present its binding offer for Alitalia by the middle of this month. The Italian government will have the final word on accepting or rejecting the sale and Air France-KLM has said it will also seek the approval of the government which comes out of the April 13-14 Italian elections.
