The breakup of KLM/AZ presents a very interesting situation for the emerging DL/AF/Aeromexico/Korean alliance. Should it persue a link with AZ? What benefits and/or problems would it add? I see the positives as:
1) Italy is one of the top European destinations and Alitalia has an enormous market share. Adding them to the alliance would provide increased direct flights from the US & the key European cities.
2) DL/AF would seem to benefit from another strong airline to serve the Southern European/Eastern European markets. The Malpensa hub would seem to be a good base (if they can ever get this hub out of the disasterous state it is in).
3) DL/AF have the monetary resources to invest in the privitization of AZ ---- and possibly help make it a more efficient airline.

The drawbacks:
1) AF already operates a very large and efficient European operation which covers most, if not all, of the largest & mid-size markets.
2) The CDG hub will continue to expand and adding a competing hub at Malpensa, which is not that far away, would not seem to make sense.
3) Malpensa. This is a disaster right now. KLM is a very savy company & would not have pulled out if they thought this hub could work.

Personally, I like Alitalia's service and have had good luck with them. But personal experience aside, they do not seem to be viewed that favorably by members of this board.

I would welcome all viewpoints. What is clear is that AZ & KLM both need to enter a strong alliance soon. And as we've seen from the DL/AF/Aeromexico experience, waiting too long leaves you secondary players (Korean & possibly Aeroflot).

Thanks!  ~