Italian Premier Romano Prodi and French President Jacques Chirac met on Friday but unexpectedly preferred not to discuss a possible merger between Alitalia and Air France.
Earlier this week, sources at the premier's office said the question of Alitalia was "very dear to Prodi's heart... and will certainly be on the agenda of his talks with President Chirac".
Speaking at a press conference here after the bilateral summit, Prodi limited himself to saying the matter was not discussed, while Chirac said that, in his own personal view, a merger between the two national carriers would be "a good thing".
However, the French president quickly added that "these are two private companies and their future is their own business".
This view was echoed by Prodi's spokesman, Silvio Sircana, who said that a possible merger was best discussed in the respective board rooms of the two airlines and not at a Franco-Italian summit.
Air France KLM CEO Jean Cyril Spinetta confirmed on Thursday that talks had begun between the two carriers but made a point of saying they were only exploratory and non-binding.
He said Alitalia had requested the contacts and added that progress would depend on three key factors: the efficiency of Alitalia's rescue plan, mapping out a common strategy and the synergies which would be achieved by a partnership or future merger.
However, The Financial Times speculated on Friday that Spinetta's renewed interest in Alitalia was due to Emirates' rumoured interest in the Italian carrier.
The British financial daily explained that the Gulf airline was Spinetta's "bete noir" and "any suggestion of Emirates moving into Italy would send Spinetta rushing to Rome with a plane-load of more enticing proposals".
Air France has always been on the short list of possible partners for the troubled Italian carrier and already holds a 2% stake in Alitalia.
Last year, the French airline shelled out 20 million euros to take part in the Italian carrier's rights issue in order to maintain its quota.
In an interview published by Le Figaro on Thursday, Prodi said that "while I have always supported contacts between the Italian and French airlines, I now have many doubts".
Prodi explained that these centered on whether Alitalia would be an active partner of Air France, as he would prefer, or just acquired for its assets and absorbed, which he opposed.
The Prodi administration, which has given Alitalia until January 31 to get back on course, wants the airline to find a partner and some of its members have indicated a preference for an Asian tie-up.
Possible suitors for Alitalia include Air China and Thai Airways.
Thai Airways Executive Vice President Wallop Bhukkanasut said in an interview last week that his company was holding informal talks with Alitalia.
However, Alitalia later denied any negotiations with Thai.
