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Lufthansa, Air France-KLM May Come to Alitalia's Rescue

September 26, 2008 By: Kirk Cassels

The question as to whether Alitalia will go under or not remains unanswered today as rivals Lufthansa and Air France-KLM are considering possible stakes in the assets of the Italian carrier, Reuters reports. It's the second piece of promising news for Alitalia, coming shortly after Italy's largest union, CGIL, made a 180ยบ turn from its initial refusal to back an investment offer from investment firm Compagnia Aerea Italia (CAI).

Reuters is reporting that sources close to Lufthansa believe the German airline may take a stake of 20 percent or more in Alitalia. Meanwhile, Air France-KLM, whose deal to buy Alitalia collapsed this year over union opposition, is also eyeing a stake of as much as 25 percent in the CAI consortium taking over Alitalia, Reuters reports.

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