Italian government scrambles for deal to save Alitalia

MILAN (AP) - 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 that the government was evaluating alternatives.

'œWe do not have a market solution within reach,'ť he said.

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

Delta said it had no further comment on its position on Alitalia.

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.

'œThere have been attempts to privatize the company for 10 years, but it is of a size that the market has trouble accepting,'ť said Patuanelli.