LH used to have LH Italia and they stopped it as they lost lots of money on it. Taking AZ is not necessaritly wise as AZ already had some kind of re-start and it did not make it a profitable business. AZ's problems with work unions, over-staffing, ... is not easy to solve - if possible at all. So, why burn lots of money and management effort on AZ when both might be better used somewhere else in th LH group. Besides, taking AZ might really have some problems with European antitrust rules as AZ as AZ will be much larger than the remaining AB and AZ will have to move from SkyTeam to *A. AF/KL will heavily resist.

Moving AB from OW to *A is not so much of a problem as AA is already rather dissatisfied with AB. If LH will take any kind of AB, then a move to *A makes a lot of economic sensse and does not really hurt OW.