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Lufthansa poised for alliance with Alitalia: report

ROME (AFP) — Germany's Lufthansa is the airline in talks with Alitalia over a partnership deal aimed at saving the cash-strapped Italian national airline from bankruptcy, a report said Saturday.

"There is no longer any doubt on the foreign partner: Lufthansa is in pole position to sign an alliance," said the La Stampa daily, citing sources close to the negotiations.

Italian Prime Minister Silvio Berlusconi said earlier this month talks were being held with a "large foreign company" over an agreement that would bail out the airline.

The report predicted that Alitalia would also sign a deal with the Rome-based airline Air One under which it would be sold to the "new Alitalia" and part of the proceeds reinvested in the ailing company.

Alitalia recorded pre-tax losses of 215 million euros in the first quarter of this year.