Post by Kim on Sept 30, 2003 10:11:31 GMT -5
KLM and Air France announce alliance to form giant European airline
Canadian Press
Tuesday, September 30, 2003
PARIS (AP) - Air France and KLM Royal Dutch Airlines announced the terms of a landmark partnership Tuesday, hoping to create Europe's leading airline group.
The new company, Air France-KLM, would have annual revenues equivalent to about $22 billion US.
It is the first time two major European airlines have joined in such a tight alliance. KLM's board unanimously approved the deal, the airlines said.
"We have always been convinced of the necessity of consolidation in the airline industry. Today, we announce a combination with KLM that will create the first European airline group," stated Jean-Cyril Spinetta, Air France CEO.
Under the deal, the French government's 54.4 per cent stake in Air France would be diluted to 44 per cent, the statement said,
The group would serve 226 destinations worldwide, Air France said, operating 540 aircraft and employing 106,000 people.
The group will maintain two operating companies.
The union comes as many airlines are struggling to survive a downturn in travel that followed the September 2001 terror attacks.
Airlines have also suffered because of wars in Afghanistan and Iraq, outbreaks of severe acute respiratory syndrome and tough competition by no-frills rivals like Ryanair and easyJet.
Tuesday's statement said the combined group could be "reinforced by the potential integration of Alitalia," Italy's flagship carrier.
Alitalia has said it would like to join a three-way alliance with KLM to help it increase productivity and remain competitive in a global market.
Canadian Press
Tuesday, September 30, 2003
PARIS (AP) - Air France and KLM Royal Dutch Airlines announced the terms of a landmark partnership Tuesday, hoping to create Europe's leading airline group.
The new company, Air France-KLM, would have annual revenues equivalent to about $22 billion US.
It is the first time two major European airlines have joined in such a tight alliance. KLM's board unanimously approved the deal, the airlines said.
"We have always been convinced of the necessity of consolidation in the airline industry. Today, we announce a combination with KLM that will create the first European airline group," stated Jean-Cyril Spinetta, Air France CEO.
Under the deal, the French government's 54.4 per cent stake in Air France would be diluted to 44 per cent, the statement said,
The group would serve 226 destinations worldwide, Air France said, operating 540 aircraft and employing 106,000 people.
The group will maintain two operating companies.
The union comes as many airlines are struggling to survive a downturn in travel that followed the September 2001 terror attacks.
Airlines have also suffered because of wars in Afghanistan and Iraq, outbreaks of severe acute respiratory syndrome and tough competition by no-frills rivals like Ryanair and easyJet.
Tuesday's statement said the combined group could be "reinforced by the potential integration of Alitalia," Italy's flagship carrier.
Alitalia has said it would like to join a three-way alliance with KLM to help it increase productivity and remain competitive in a global market.