Air Transport

Italian economic development minister Claudi Scajola has authorised the sale of Alitalia's assets to the rescuing investor consortium Compagnia Aerea Italiana, for an increased price of €1.052 billion ($1.31 billion).

CAI had originally offered a transfer price of €1 billion. Scajola has cleared administrator Augusto Fantozzi to proceed with the sale.

Scajola's approval follows a "complicated" procedure, says the ministry, which culminated yesterday in his receiving independent financial adviser Banca Leonardo's assessment of a market value of €1.051 billion for Alitalia's assets.

European transport commissioner Antonio Tajani had already warned that the assets must be sold at market prices.

Following the assessment, further discussions have led to the final transfer figure. Fantozzi will be able to carry out the asset sale by early December.

The ministry says that, with the authorisation of the sale, a new airline company is set to emerge - totally discontinued from the old one - which will "continue to represent this country in the world".

CAI is to "proceed to the selection of foreign partners" which will "strengthen the presence of the new Alitalia on world markets", the ministry adds.

No firm details of potential foreign involvement have emerged. Air France-KLM, which attempted a tie-up with Alitalia before it entered administration, and Lufthansa have each frequently been mentioned as possible investors in a successor carrier.

Lufthansa chief executive Wolfgang Mayrhuber, speaking at an event in New York today, referred to Alitalia's resilience, stating: "The cats in Naples live very long."

Air France-KLM could not immediately be reached to comment.