Italian Deputy Premier and Culture Minister Francesco Rutelli on Tuesday threw his support behind the bid Italy's second biggest airline Air One is making for national carrier Alitalia.
Italy "cannot allow the national carrier to be dominated by an airline of another country which has a national agenda which could damage Italian interests in the decades to come," Rutelli said.
The acquisition of Alitalia by Air One, he observed, "would be the most rational solution".
The deputy premier also called on Italy's business sector to help "save" Alitalia from falling into foreign hands.
The Italian government decided at the end of last year to sell most if not all of the Treasury's 49.9% stake in Alitalia.
An attempt to auction the stake failed this summer after the three remaining bidders, including Air One, dropped out because of the conditions imposed by the Treasury.
Direct negotiations are now underway with parties interested in Alitalia. These include Air One as well as Air France-KLM, Europe's biggest airline which already holds a 2% stake in Alitalia and is its partner in the international Sky Team alliance.
Sector sources told ANSA on Tuesday that a short list of possible buyers would be ready at the start of next month and a final decision would be made by Christmas.
Aside from Air France.KLM and Air One, the list would include Germany's Lufthansa, British Airways and the private equity group Texas Pacific, among others.
In related developments, Lombardy Region President Roberto Formigoni accused Air France-KLM of wanting to "destroy" Milan's Malpensa airport.
Speaking a day before his meeting with Alitalia Chairman and CEO Maurizio Prato, Formigoni said "it appears to me that Air France is interested in Malpensa's destruction.
According to the region president, if Alitalia cuts over 150 flights from the city's second airport, the French-Dutch carrier will not move to fill the void.
Prato has drawn up a transition business plan for Alitalia which calls for a sharp cutback in Alitalia service from Malpensa in order to focus on the airline's main hub in Rome.
Malpensa is a political tinder box in which regional interests transcend party lines.
Pundits claim that one of the reasons why the Alitalia auction failed was the demand that the airline continue operating out of two hubs.
Air France-KLM, which did not take part in the auction, showed a renewed interest in Alitalia after Prato's plan was drawn up.
Formigoni has branded Prato's plan as "irrational and defeatist" and urged the government in Rome to find new options.
Last week, Irish budget airline Ryanair said it was ready to invest some $1 billion and move into Malpensa if the airport's operator SEA could guarantee lower costs and greater efficiency
Ryanair, Europe's most successful budget airline, claimed it could boost the number of passengers traveling through Malpensa from the current three million to over ten million.
According to company sources, "it is a proven fact that where we fly, other airlines see their business increase".
Another low cost airline, Easyjet, announced on Tuesday that it would invest 600 euros over the next 18 months to double its service out of Malpensa.
