By David Jolly and Nicola Clark Alitalia's last chance to avoid bankruptcy appeared to have failed Thursday, after new demands from the Italian flag carrier's unions led Air France-KLM to abandon takeover talks.

By Michael Harrison More than one-third of British Airways' operating profits could be wiped out if Europe and the United States agree a deal in coming months to liberalise the transatlantic air market and open up Heathrow to all comers, according to new estimates circulating in the City.