Air France-KLM and Etihad Airways working on JV: report

Air France-KLM and Etihad Airways are reportedly working on a JV, to be launched in autumn 2012, according to Le Figaro). The partnership will reportedly extend beyond the commercial cooperation previously announced. As previously reported in recent months, the two companies have been in talks about some form of commercial partnership that would fall short of a capital investment. The latest reports indicate Air France-KLM and Etihad would aim to create a link between Europe and the Middle East in a JV similar to the trans-Atlantic alliance between Air France and Delta Air Lines. The JV may later include Air Berlin, 39% owned by Etihad, and Alitalia, in which Air France-KLM owns 25%, and is part of efforts to better compete with Emirates and Lufthansa.