The plot thickens over the government’s attempt to sell 49.9% of the national airline (la compagnia di bandiera) Alitalia to the highest bidder. Or maybe we should say, the plot thins. When bids were first invited by Economic Minister Tommaso Padoa-Schioppa, there was a field of 11 contenders. Only 5 of these were admitted to the final round, and then the 5 were trimmed down to 3. On May 29, the alliance among the Texas Pacific Group, Mattlin Patterson and Mediobanca announced its withdrawal, leaving 2 bidders still standing. Yesterday the Russian press agency Interfax reported that one of the 2 remaining, Aeroflot, would be opting out also. The announcement was later denied by Aeroflot’s spokesperson, but it still looks as if something fishy is going on. Aeroflot says that the price is too high (but wasn’t it supposed to be an auction?) and that they will make their final decision on July 2, the deadline for closing bids. If Aeroflot drops out, that would leave only 1 bidder, AirOne, owned by Italian financier Carlo Toto. Representatives of AirOne have been talking to Alitalia’s unions. Last year Alitalia lost 626 million euros. Passenger traffic last month showed a 4.5% loss over May 2006. And the strikes go on. Meanwhile, we learned today that Giancarlo Cimoli the ex CEO of Trenitalia, the national rail service, who was moved over to run Alitalia and subsequently replaced (he left the railroad far more deeply in debt than the airline), took home almost 3 million euros in compensation in 2006.