ROME, April 2, 2008 (AFP) - The Italian state will not make a requested 300-million-euro bridging loan to Alitalia unless the failing airline's unions reach agreement with Air France-KLM on the European giant's takeover bid, Economy Minister Tommaso Padoa-Schioppa said Tuesday.

MIAMI, April 1, 2008 (AFP) - Federal agents Tuesday in Florida arrested a Jamaican man acting suspiciously as he boarded a flight to Montego Bay, Jamaica, and found apparent bomb-making materials in his baggage, local media reported, quoting police.

MADRID, April 1, 2008 (AFP) - Spanish low-cost airlines Vueling and Clickair are to weigh a possible merger of equals, Vueling announced Tuesday.

'Vueling and Clickair have agreed to begin a negotiating process to study the possible integration of the two companies,' Vueling said in a statement to the Spanish market authority, CNMV.

ROME, April 1, 2008 (AFP) - Air France-KLM is ready to reduce the number of job cuts at Italian flag carrier Alitalia from the 2,100 it initially wanted in an effort to get its takeover offer accepted, local reports said Tuesday.

The Ansa and RadioCor news agencies, citing union sources, said that by changing some of its planned aircraft, Air France-KLM could keep more staff.

SYDNEY, April 1, 2008 (AFP) - A new security scanner that sees through passengers' clothes will be tested at Australia's Melbourne airport, the national carrier Qantas announced Tuesday.

SYDNEY, April 1, 2008 (AFP) - A Vietnam Airlines pilot was charged in an Australian court Tuesday with smuggling millions of dollars in drug profits out of the country.

Quoc Viet Lai, 58, faces 40 counts of money laundering after allegedly taking 3.7 million dollars (3.4 million US) out of Australia between June 2005 and June 2006, the national AAP news agency reported.

WASHINGTON, March 31, 2008 (AFP) - The United States and Australia on Monday inked an open skies aviation agreement eliminating restrictions on air travel between the two allies that would lead to lower fares, officials said.

ROME, March 31, 2008 (AFP) - The deadline for takeover negotiations between Air France-KLM management and unions at Alitalia was extended to Wednesday, the struggling Italian carrier said after a day of tense talks.

ROME, March 31, 2008 (AFP) - Tense negotiations with Alitalia's unions on Air France-KLM's takeover bid went into overtime on Monday as the Italian airline's boss gave workers 24 hours to reach a 'basic accord.'

ROME, March 31, 2008 (AFP) - Alitalia chairman Maurizio Prato urged unions representing the airline's workforce on Monday to reach a 'basic accord' on Air France-KLM's takeover plan in the next 24 hours, media reports said.