The Italian government is concerned that domestic hostility could lead Air France-KLM to withdraw its bid for Alitalia, leaving the lossmaking Italian flag carrier one step closer to bankruptcy.

It was decided at an Alitalia board meeting on Thursday to put off until next Tuesday a decision on whether to proceed with a bid for the centre-left’s government’s 49.9 per cent stake from Air France-KLM or from Air One, a much smaller domestic rival.