Alitalia-Etihad tie-up hangs in the air

[ROME] The fate of stricken Italian airline Alitalia is set to be decided this week by the outcome of talks for UAE carrier Etihad to buy up to 49 per cent of the company.

If a deal is struck, Alitalia will be rescued from the threat of bankruptcy, and fast-growing Etihad will take a big step forward into Europe and win some trans-Atlantic routes.

Alitalia…