Air France faces several weeks of difficult negotiations with Alitalia as it tries to devise a politically palatable way to assume control of the struggling Italian airline. But those near-term hurdles pale in comparison to pending challenges if the acquisition goes ahead. Although Alitalia’s long-term survival is at stake, in many respects Air France-KLM has much more riding on the terms of the deal. After successfully orchestrating the merger of Air France and KLM, and inking a virtual ...

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