Last checked at 
(Updates with Easyjet confirmation of interest)
PARIS, Sept 9 (Reuters) - Shares in Air France-KLM
fell sharply on Monday after a French minister named the airline
group as a likely bidder for bankrupt carrier Aigle Azur, which
left 19,000 passengers stranded after abruptly halting
operations.
Air France-KLM said it had no immediate comment on whether
it had submitted an offer for all or part of Aigle Azur, as a
midday deadline passed. British budget airline Easyjet
said it had expressed interest in some Aigle Azur operations.
Junior transport minister Jean-Baptiste Djebbari earlier
told Le Parisien that Air France-KLM "appears to want to make an
offer" - also mentioning a likely bid from Lionel Guerin, former
head of the French carrier's Hop! short-haul business.
Higher fuel costs and stiffer low-cost competition have led
to a wave of bankruptcies among smaller European airlines in the
past three years, including Air Berlin, Germania, British-based
Monarch, Latvia's Primera Air and Swiss SkyWork.
Aigle Azur's difficulties were compounded by the privately
held carrier's over-expansion from medium-haul services focused
on Algeria into long-haul destinations such as Brazil.
The French state, keen to drum up interest and save Aigle
Azur's 1,200 jobs, has also flagged EasyJet and Air Caraibes
parent Dubreuil Group as potential bidders.
French Finance Minister Bruno Le Maire said on Friday that a
"principal offer" for Aigle Azur was being considered. The
bankrupt carrier's works council was due to meet on Monday
afternoon to consider any bids received.
Government influence on Air France-KLM, in which France
holds a 14.3% stake, added to investor concern that had driven
the Franco-Dutch group's shares 8.6% lower by 1145 GMT.
"The government is likely to push them to get involved," one
trader told Reuters.
Officials turned to Air France-KLM as early as April, after
Aigle Azur sought help from a government agency, according to
financial daily Les Echos. Its interest was piqued after the
struggling carrier discussed selling take-off and landing slots
at Paris Orly to Spain's Vueling, the paper reported.
Air France has scrambled extra Algeria flights to help
repatriate the 13,000 Aigle Azur passengers still stranded by
the collapse. Most will have reached their destinations by the
end of the week, the junior transport minister said.
(Reporting by Patrick Vignal and Laurence Frost; Writing by
Richard Lough and Laurence Frost; Editing by Richard Lough and
Louise Heavens)
