Alitalia is intensifying talks with potential partners, with the aim of agreeing an alliance ahead of a shareholders meeting set for the end of May. Two working teams are negotiating with the leading candidates, Air France and KLM, with the former regarded as favourite to agree a deal.

The Italian carrier's new chief executive, Francesco Mengozzi, is meanwhile reviewing Alitalia's industrial plan through to 2004, to decide whether it must be rewritten. Mengozzi says the financial goal for the current year is to break even after last year's big loss.

Swissair is not yet included in partnership talks with Alitalia due to SAir's own internal problems, but Mengozzi is due to meet his Swiss counterpart soon. A deal between the pair linking Alitalia's Eurofly charter arm and Volare, part-owned by SAir, is expected but has not yet been signed.

Source: Flight International