Alitalia's Plan to Save Itself Includes Teaming Up With Delta and Air France-KLM

With beleaguered Italian airline Alitalia expecting more stable ownership by next month, it is focused on joining a new joint venture with Delta Air Lines, Air France-KLM, and Virgin Atlantic, buying back its loyalty program from Etihad Airways, and winning more corporate and high-end leisure customers, its chief business officer said Wednesday in an interview in New York.

The new controlling owner is likely to be Italy's national railway, Ferrovie dello Stato, which is seeking other investors to join it, Alitalia’s Fabio Lazzerini said. Reuters on Wednesday reported EasyJet and Delta Air Lines could be involved, and both had earlier expressed interest, before the commissioners temporarily leading the airline chose the railway as their preferred bid. 

"It should be completed by the end of January," Lazzerini said. "They have an interest in finding an industry partner to help them run the company. The indication is that this should happen. The progress which has been done in the past weeks has been quite positive."

Alitalia has been in administration — Europe's version of bankruptcy — since last May, when Etihad Airways, which had owned 49 percent of it, walked away. Rather than let the once dominant carrier go bust, as some had recommended, the Italian government stepped in, providing a 900 million euro  ($1.02 billion U.S.) bridge loan to keep it operating until the administrators could fin