The strategic partnership comes at a cost of $427 million by Air France-KLM (AF-KLM), for which it receives a minority stake in Compagnia Aeria Italia, the new Alitalia (AZ).

After much declamation, coming together, going apart, fear of total bankruptcy, threats of crippling strikes, posturing by politicians, and fear of failing financing, among other matters, the new AZ sees the AF-KLM partnership as the best solution to providing “the best possible service between Europe and the rest of the world.” Both British Airways and Lufthansa had expressed interest in becoming an AZ partner, but neither really came up with concrete investment proposals. AF-KLM now has 25% ownership in AZ

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