Air France-KLM Notably Absent From List

Italy's deadline for bidders wishing to purchase the country's ailing airline Alitalia came and went Monday with eleven potentials dropping their names in the hat. Among them were private equity firms, banks, private businesses and individuals, but only one airline -- budget Italian carrier Air One.

The biggest surprise of the auction so far is that Air France-KLM did not submit itself as a bidder for Alitalia. As ANN reported, industry observers had considered the French airline a front-runner, especially in light of its CEO's resignation from Alitalia's board. Many saw that as a first step in eliminating any conflict of interest for a potential bidder. Others speculated Air France might not be happy with vague purchase requirements from Italy's government that Alitalia's purchasers would have to ensure the protection of the carrier's "national identity," and the "quality and quantity" of domestic service.

Despite a surge in Alitalia's stock Tuesday on the news of such a long list of suitors, analysts warn many, if not most, will not stay the course during the auction. One of the potential bidders is a professor who says he is penniless.

A source close to one of the bidders told CNNMoney, "At the moment it's just expressing interest. All they've asked is for anybody who might be interested to say so. No one's made an offer or put money on the table, so they have nothing to lose."

Despite Air France missing the deadline -- and a statement Monday that conditions were not right for it to join the bidding -- Italy's transport minister Alessandro Bianchi said the French carrier could still come forward.

"In this phase, I think being on the sidelines is the wisest decision for [Air France]. They're waiting to see what happens," Bianchi told La Stampa newspaper in an interview headlined "Air France will arrive."

Among the bidders given credence by industry observers are Italian entrepreneur Carlo De Benedetti's Management and Capitali SpA, the Air One consortium, US private equity powerhouse Texas Pacific Group, and Italy's number two bank UniCredit.

Italy says it wants to conclude bidding and find a buyer within six months while hinting the deal could be wrapped up in as little as two months.

FMI: www.alatalia.com