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Still potential for Aeroflot-Alitalia deal

Silvio Berlusconi - Met with Vladimir Putin
Silvio Berlusconi - Met with Vladimir Putin

Russian carrier Aeroflot has emerged as a potential partner for cash-strapped Italian airline Alitalia, which could also be in line for a government loan of €100m-€150m.

Italian Prime Minister-elect Silvio Berlusconi said that in a meeting with visiting Russian President Vladimir Putin, he had raised the possibility that Aeroflot might have a role to play in Alitalia's rescue.

'We talked about Alitalia and the possibility of negotiations with Aeroflot,' he told a press conference.

Mr Berlusconi provided no further details.

But Mr Putin said after the meeting: 'I have spoken with the head of the Aeroflot board and he is ready to resume contacts with Alitalia.'

Mr Putin said he and Berlusconi had 'discussed this problem and it is clear that Prime Minister Berlusconi is preoccupied by the situation and that he is thinking of the national interest.'

Aeroflot in November withdrew its interest in acquiring the 49.9% stake in Alitalia that the Italian government is trying to sell.

Italian newspapers, meanwhile, reported that a government loan of €100m to €150m to Alitalia, at market rates, could be approved as early as next week.

Mr Berlusconi and the outgoing government have said they would try to agree a common approach in order to save Alitalia from bankruptcy.

Mr Berlusconi has also mooted a resumption in takeover negotiations with Air France-KLM, which have broken down, but only if a deal  could be reached that would accord 'equal status among the three airlines'.