Around the World: Italy

Alitalia to keep flying

Italy's government yesterday scrambled to salvage Air France-KLM's collapsed deal to buy Alitalia, promising to keep the airline flying despite a looming cash crisis.

The state-controlled carrier, whose fate has become a top campaign issue ahead of Italy's general election in 10 days time, has said its cash will run out in a few months unless a new owner steps in to pump more money into its coffers.