Air China on Friday denied speculation that it would buy stake in Italy's struggling flagship carrier Alitalia.

"I haven't heard of such decision, and that is not a priority Air China would actively work on," the company's board secretary Rao Xinyu told China Daily.

Media reported this week that Air China would be a potential foreign bidder in the privatization of Alitalia in order to expand its business in Europe.

The Italian government is inviting bids for at least 30.1 percent of Alitalia's shares.

The Italian airline has not posted net profit in the past four years. Analysts said labor resistance to change and political interference have affected its productivity, leaving it unable to compete with low-cost carriers.

Alitalia should strengthen its relationship with Asian carriers in order to expand its business and leisure travel market, Italian Vice-President and Foreign Minister Massimo D'Alema was quoted as saying during his visit to China last November.

Alitalia used to fly the Rome-Milan-Beijing route. But the flight was cancelled after the September 11 terrorist attacks of 2001, as the airline industry struggled with plunging traffic.

Air China is the only Chinese carrier flying to Italy. It flies five times weekly from Beijing to Rome and three times weekly from Shanghai to Rome.

These China-Italy routes' business are "not very big," Rao said, adding that the routes to Germany boast the best traffic among Air China's European flights.

Source: China Daily