Berlusconi puts Aeroflot back into the reckoning for Alitalia

Rome: The Alitalia story stuck to its routine of taking a new twist and turn about once every fortnight with newly-elected Italian premier, Silvio Berlusconi, now announcing that he did not rule out talks with Russian carrier Aeroflot to buy state-run Alitalia. Aeroflot had pulled out of talks in November last year. Berlusconi's announcement came even as Vladimir Putin, soon to be ex-Russian president, arrived in Sardinia for a summit meet with him.

"All options are being considered as long as Alitalia remains the national air carrier, and decisions are made in Italy," Berlusconi told journalists shortly before meeting Putin. During his second term as premier, Berlusconi was perceived as a key ally of Putin in Europe.

Along with airline union resistance, Berlusconi's opposition to an Air France-KLM bid would also have gone a long way in scuttling their attempt to take over struggling flag carrier Alitalia. His statement that he would rustle up a coalition of Italian financiers, or partners, as an alternative to the AF-KLM offer, certainly undermined the previous administration's approval of the AF-KLM's offer.

Meanwhile, there also reports in the Italian media that talks with AF-KLM may be resumed.

So far, Aeroflot is yet to respond.