Italy has promised long-awaited progress soon on Alitalia’s fate—but the new government’s stated wish to keep it at least partly in Italian hands complicates matters for the airline bidders looking at all or part of the struggling carrier. The 71-year-old airline, hurt by growing competitive pressure in Europe’s air transport sector, and squeezed by low-cost carriers and high-speed trains on its domestic network, filed for bankruptcy in May 2017. An already drawn-out ...

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