Alitalia’s plans to partner with Air France-KLM could rise from the ashes after Italian prime minister Silvio Berlusconi indicated that he might favour the move.
Previously the premier had said that the deal would be “unacceptable†but he has now told French president Nicolas Sarkozy that a takeover might be “a good solutionâ€.
But talks have a long way to go, with Air France KLM saying reviving negotiations would be difficult. The carrier was deterred from forging ahead with the plans earlier this year after heavy union opposition.
Alitalia has warned that an urgent cash boost is needed to save it despite also receiving a government loan which is now the subject of EU scrutiny.
By Dinah Hatch
