Alitalia, Lufthansa Synergy Could Be 500 Mln Euros

A group of Italian investors is relaunching Italy`s flag carrier as a smaller airline.

Should Italian carrier Alitalia pick Lufthansa AG as its partner, synergies will be more than 500 million euros, a member of the German airline's board said in an interview published on Wednesday.

A group of Italian investors is relaunching Italy's flag carrier as a smaller airline. The company has said Air France-KLM and Lufthansa are battling for a stake of up to 25 percent.

"If the new Alitalia picks Lufthansa, there will be synergies of more than 500 million euros," Holger Hatty, a member of Lufthansa's board and the company's representative in talks with CAI, told Italian newspaper Il Messaggero.

He said "the entry into a multihub and multibrand network will allow the Italian company to be an equal, autonomous and strong partner."

Hatty said Lufthansa had sent its partnership proposal to CAI and was waiting for a response.

"It is wrong that Lufthansa is only ready to come in if it will have 45 percent of the capital," he said.

"We want to have two hubs. (Rome's) Fiumicino and (Milan's) Malpensa ... The two will be equal -- Rome will focus on tourism ... Milan will focus on business."

The head of CAI has previously said the prospective roles of both Fiumicino and Malpensa under an alliance would play a key role in the decision on which partner is chosen.

Plans that affect airport hubs are controversial in Italy, and Alitalia's decision to cut back at Malpensa set off a backlash from politicians and workers in Italy's north.

A source close to the talks has said British Airways will consider whether it is willing to buy a stake in Alitalia. Unlike the French and German carriers it has said it is only interested in a commercial deal with the Italian carrier.

But CAI says it would favour striking an alliance with a foreign airline willing to buy a stake rather than seeking a commercial deal.