ROME – Bank managers advising the government on the sale of Alitalia were to discuss the failing airline's recovery plan Wednesday with Air France-KLM, Italian news reports said.

Top officials of Intesa Sanpaolo were traveling to Paris to present the plan to the Franco-Dutch carrier, which made a failed bid for Alitalia earlier this year.

Intesa Sanpaolo and Air France-KLM declined to comment on the reports.

News of a possible involvement of Air France-KLM came a day after 16 investors joined to create a new company that plans to take over Alitalia's profitable assets and inject euro1 billion ($1.5 billion) into the airline.

The group is lead by Roberto Colaninno, the chairman of motorcycle maker Piaggio, as well as Carlo Toto, the head of Italy's second-largest airline, Air One.

Alitalia's future has been on hold since Air France-KLM walked out of talks to take over the Italian carrier after reaching an impasse with unions. The airline has been losing euro200 million ($292 million) a day.

Premier Silvio Berlusconi has vowed to save Alitalia and keep it in Italian hands. His government tapped Intesa Sanpaolo as an adviser in trying to sell its 49.9 percent stake in the airline.

News reports say the government is looking to break Alitalia in two, with the new company injecting money in the profitable part and absorbing part of Air One, while Alitalia's bad assets will be covered by bankruptcy protection.

The government is scheduled to hold a Cabinet meeting Thursday and is expected to discuss possible measures for saving Alitalia. According to recent reports, the Cabinet might discuss changes to an existing bankruptcy protection law.

Alitalia is scheduled to hold a board of directors meeting Friday.