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...Citing national pride, then opposition leader Silvio Berlusconi had railed against a complete takeover by the French-Dutch carrier last year. But this fall, after returning to the Prime Minister's office, Berlusconi was forced to face the reality that Alitalia's coffers were running dry. A consortium of Italian businessmen were encouraged to step in to salvage Alitalia in a deal that merged it with Italy's No. 2 carrier, Air One, But the implicit understanding was that a foreign partner would also have to be found...

Author: /time Magazine | Title: Why Air France-KLM Bought 25% of Alitalia | 1/12/2009 | See Source »

...Politicians from Italy's rich north tried to block the deal because Air France has promised to shift Italy's main hub from Milan's Malpensa back to Rome. On Monday, Milan mayor Letizia Moratti pleaded in vain for Alitalia's managers to reconsider a partnership with German carrier Lufthansa...

Author: /time Magazine | Title: Why Air France-KLM Bought 25% of Alitalia | 1/12/2009 | See Source »

...sale, which may be the first step toward an eventual takeover by the French-Dutch carrier, gives Air France-KLM a big say in decision-making at Alitalia and greater access to Italian routes, which are ripe with potential for both international and domestic travelers. Unlike most other European countries, Italy's geography (1,350 kilometers (840 miles) north-south from Turin to Reggio Calabria, and two major islands) fuels steady national flights. Despite the current worldwide economic crisis, Italy also remains a destination for tourists as well as the families of Italian emigrants and their descendants around the world...

Author: /time Magazine | Title: Why Air France-KLM Bought 25% of Alitalia | 1/12/2009 | See Source »

...recently as last Wednesday, have virulently opposed the new consortium, which has trimmed the 20,000 work force by some 3,000, and cut pay and benefits to those employees who remain. Unions say that joining up with Air France is essentially the death knell for the Italian carrier. More labor unrest is expected. But many ordinary Italians will finally be satisfied that an apparently viable solution had been found to avoid more public investment or outright failure of the national carrier...

Author: /time Magazine | Title: Why Air France-KLM Bought 25% of Alitalia | 1/12/2009 | See Source »

...Bush then broke with his own tradition and weighed in on some mistakes. The "Mission Accomplished" banner brandished during his aircraft-carrier appearance two months after the invasion of Iraq gave the wrong impression about his and his Administration's assessment of progress in the war, he said. He then referred obliquely to mistakes in some of his own "rhetoric"; Bush has said that his vow to catch Osama bin Laden "dead or alive" and his challenge to America's adversaries to "bring 'em on," among other cavalier comments, were unhelpful, and that is presumably what he was hinting...

Author: /time Magazine | Title: Bush's Last Press Conference: Full of Disappointment | 1/12/2009 | See Source »

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