[doyler]

Air One (Italy) (Rome) has also applied to acquire the Italian government?s 49.9% share of flag carrier Alitalia. Air One is up against the powerful Air France-KLM Group. This puts the government in a quandry. Should it keep Alitalia in Italian hands by going with Air One? However Air One may not have the financial strength to turn around the ailing carrier. The Air France-KLM Group is much larger and has the resources to finally solve the problems with AZ. However the group is not Italian.

[doyler]

Alitalia (Rome) through the Italian government may be leaning towards favoring the Air France-KLM bid over the Air One bid and a third bid led by an Italian lawyer. Alitalia?s chairman Maurizio Prato said the Air France-KLM bid for the government?s 49.9% share of Alitalia and recovery plan is based on Alitalia?s own restructuring program. He further stated there are still question marks surrounding the Air One proposal. This may be a public way of justifying the foreign plan over a domestic offer. Lufthansa previously pulled out of the final bidding.

[doyler]

Ryanair (Dublin) has demanded the European Commission deny the possible Air France-KLM Group?s bid for Alitalia until both airlines have paid back a combined $3.9 billion in ?illegal state aid? received from the French and Italian governments. Ryanair has been constantly critical of state support for airlines and has already filed two separate State Aid complaints with the European Commission.