Volare offers a good product with an excellent price, that's one of the reason of their success on the market (think only they moltiplied by 4x coefficient their fleet in 2 years). Italian market, has said Airblue, miss a true low-cost airlines (like easyJet or Ryanair); Volare sells its product at a medium way from full-fare airlines and no-frills airlines. If a big take it, we could see in order:
1) higher prices
2) the same standard as today (wich is good enough for today price, but I bet it it won't better as fares increase)
3) less competitiveness.
I think Volare should go on its own; the natural partner of Volare died some months ago -a medium European airlines with an extended intercontinental market-
As KLM is bigger in terms of European market than SR was, and the link with BA, I think it could put too much pressure and breaks on them.
As partner I don't like neither BA nor KLM, but even after the Yahoo article I bet on BA. They've just lost National Jet Italia, and the Italy-U.K. market is very big... but it's true, KLM still needs some partner in Europe.
Two monologues do not make a dialogue