Talks between Italy and the EC over the revamp of Alitalia will enter a key phase next week, Italian Industry Minister Giancarlo Giorgetti said on Sunday. Brussels and Rome have been in negotiations for months over Italy’s plan to restructure the airline through the launch of a new, state-owned company called ITA. The new carrier needs the EU’s approval for the government injection of 3 billion euros before it can start operating, but risks missing the summer season as talks are dragging on. “I think next week will be crucial,” Giorgetti said, adding the discussion with EU’s competition unit had been difficult. “There is a tug-of-war with Brussels ... in the name of competition, the EU wants (ITA) to free up as many (airport) slots as possible, but this is not in the interest of the new company,” he said during a political debate on the internet. The EU is requesting ITA gives up as much as half of its airport slots at Milan city airport, drops the brand Alitalia and starts without the handling and the maintenance divisions of the old carrier have triggered criticism in Italy, with trade unions claiming the EU was much tougher with Alitalia than with Air France-KLM and Lufthansa.<br/>
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The country's top airline operator is expected to post an operating profit of 76.6b won ($68.3m) for the January-March period, compared with a loss of 82.3b won posted a year earlier, according to a poll released by Yonhap Infomax. Sales, meanwhile, were estimated to have decreased 26% over the period to 1.7t won. Industry watchers attributed the robust outlook to the strong performance of Korean Air's logistics business. "The amount of cargo handled by Korean Air reached a record high amount last month," NH Investment & Securities said in its report. "The disturbed travel at the Suez Canal led to more demand for air shipping services." Asiana Airlines, which awaits a merger with its bigger rival Korean Air, is expected to post a profit in the first quarter, compared with the previous year's loss of 70.3b won. Korea's low-cost carriers, on the other hand, are estimated to have logged sluggish earnings over the first quarter due to their strong dependence on passenger travel.<br/>