ANALYSIS: Air France-KLM and Alitalia search for new balance

Air France-KLM is in talks on how it might retain co-operation with European joint-venture partner Alitalia after the Italian carrier gave notice of plans to walk away from their existing deal.

The Franco-Dutch airline says it is "holding discussions with Alitalia to see how the group can co-operate in the future in Europe", adding that the current agreement applies until January 2017.