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Air France-KLM Still Interested in Alitalia and Iberia
via NewsEdge Corporation



PARIS_Air France-KLM is open to contacts with Italian flagship carrier Alitalia, Chief Executive Jean-Cyril Spinetta said Wednesday, without detailing under what conditions it would make a bid for the struggling airline.

Spinetta said in a news conference that his airline, the world's largest by revenue, is also studying a possible tie-up with Spanish carrier Iberia.

Asked about Alitalia, he said Air France "would listen with interest" if the Italian government makes a proposal. "We are at the stage of evaluation" about Iberia, he said.

Air France-KLM Chief Operating Officer Pierre-Henri Gourgeon expressed an interest last month in the Spanish and Italian airlines.

Efforts by the Italian government to auction off Alitalia collapsed in mid-July when the last of 11 potential suitors dropped out, saying it couldn't comply with the conditions set by the government, which included maintaining employment levels.

As part of its plan to "promptly" find a buyer, Alitalia said last week it has chosen Citigroup as its financial adviser. The airline loses close to ?2 million (US$2.7 million) a day.

Air France-KLM owns a small minority shareholding in Alitalia.

In another announcement Wednesday, Air France-KLM said passengers will be able to use their cell phones mid-air in a limited trial service to be launched in Europe next year.

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