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Ministry supports Aeroflot's bid for stake in Italy's Alitalia

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The Russian Transportation Ministry supports the intention of Russia's flagship air carrier Aeroflot [RTS: AFLT] to bid for a state-controlled stake in Italy's Alitalia, the transportation minister said Sunday.
MOSCOW, April 8 (RIA Novosti) - The Russian Transportation Ministry supports the intention of Russia's flagship air carrier Aeroflot [RTS: AFLT] to bid for a state-controlled stake in Italy's Alitalia, the transportation minister said Sunday.

Italy's finance ministry has included Aeroflot, which accounts for 39% of Russia's international air traffic and 11% of domestic flights, into the list of bidders for the state package of Alitalia shares.

"This purchase will enable Aeroflot to enter the European market," Igor Levitin said while commenting on his attitude to the prospective deal.

At the same time, Levitin said this asset was problematic because Alitalia posted a loss of 3.2 billion euros in 1996-2006, according to information from the Italian economics ministry.

"But Aeroflot will not be alone. It will be helped by a Western partner," Levitin said.

Last fall, the Italian government decided to privatize the airline by selling at least 30.1% of its 49.9% stake. In accordance with the tender terms, prospective bidders are required to submit a large-scale plan of the company's restructuring.

Aeroflot earlier said it had carried 7.29 million passengers in 2006 or 8.7% more than in 2005.

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