Is it Alitalia and Air France-KLM?

It is reported that Air France-KLM Board
approved today a bid of $425 million in
exchange for shares in CAI, the investment
group which tookover some of Alitalia's in
assets out of bankrptucy. CAI's Board
will vote its Alitalia shares at a meeting
Monday in Rome.

Click to read full story on Bloomberg.

It is reported Lufthansa the second-largest European carrier
after Air France, is in contact with Alitalia and there is “still the
possibility of making an offer.”

Alitalia was put into bankruptcy administration on Aug. 29 after
political and labor opposition ended two years of attempts to sell
the airline, which was 49.9 percent state-owned.

On Monday January 12 all Alitalia passenger operations

will fall to CAI, a group of 21 investors led by

Piaggio & C. SpA Chief Executive Officer Roberto

Colaninno and including the Benetton

family’s toll-highway operator Atlantia SpA and

Intesa Sanpaolo SpA.

More on travel to Italy after the jump.