Italian government scrambles for deal to save Alitalia

MILAN – The Italian government is scrambling for a new solution to save struggling airline Alitalia, after a plan involving an international consortium failed.

Premier Giuseppe Conte said Tuesday they were evaluating alternatives, adding, “we do not have a market solution within reach.”

Conte said that both Delta Air Lines and the Italian state railway company remain interested, though officials have noted that Delta’s promise of 100 million euros ($110 million) is small.

Industry Minister Stefano Patuanelli said there is no longer any prospect of forming a consortium, which would also have included highway group Atlantia. Germany’s Lufthansa has limited any future role to a commercial agreement.

Patuanelli added: “There have been attempts to privatize the company for 10 years, but it is of a size that the market has trouble accepting.”