Prodi caretaker government can close privatization, Bianchi says - The arrival of a new government could compromise the privatization of Italy's national carrier Alitalia, Transport Minister Alesandro Bianchi admitted on Wednesday.
The government of Premier Romano Prodi resigned last week and early elections appear to be on the horizon.
According to Bianchi, should snap elections be called and the Prodi government remain in a caretaker capacity through the vote ''then the privatization process and talks with Air France-KLM can continue. In fact, it would be difficult and unreasonable to stop them''.
Only in the event of a new government ''will everything have to be re-discussed,'' he added.
Last week Industry Minister Pierluigi Bersani that current uncertainty over the government's future would have any effect on negotiations for the sale of Alitalia.
''Nothing has changed. We're talking and negotiating,'' Bersani said. ''The government will be here in any case. There is no interference''.
Alitalia is currently in exclusive negotiations with Air France-KLM for the Treasury's controlling 49.9% stake in the national carrier.
The eight-week negotiations are set to conclude in March at which time Air France is expected to make a binding offer for Alitalia.
However, forces in the opposition center right, primarily the regionalist North league, are opposed to the sale and want a moratorium, at least on Alitalia's plan to cut services at Milan's Malpensa airport.
Alitalia has embarked on a rescue plan to make it more attractive to potential buyers which includes downsizing its activities at Malpensa. The plan has the support of Air France-KLM.
On Thursday, Alitalia must confirm whether or not it intends to maintain all the slots for departures and arrivals it has at Malpensa for the summer season.
Alitalia has already dropped a number of flights at Malpensa for both domestic and international routes.
Some observers believe that Alitalia on Thursday may confirm all its slots at Malpensa in order to bolster its 'dowry' in view of its sale.
Air France-KLM was chosen by Alitalia over a domestic bid from AP Holding, which controls Italy's biggest domestic airline Air One and has the backing of Italy's number two bank, Intesa SanPaolo.
Speaking on Wednesday, Bianchi said he was not opposed to taking another look at AP Holding's offer, which he claimed has been revised.
The government decided at the end of 2006 to sell most if not all of the Treasury's stake in Alitalia.
An attempt last summer to auction the stake failed after all the bidders dropped out because of the conditions imposed by the Treasury.
It was then decided that Alitalia management would negotiate the direct sale of the Treasury's stake, with the government having the final word on the deal.
Air France-KLM had been a front runner from the start thanks to its size as well as the fact that it already owns a 2% stake in Alitalia and is its partner in the SkyTeam alliance.
