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Air France aims to acquire KLM
Paris, Sept 30: Air France has approved plans to acquire rival Dutch Airline KLM, a board member said. The Union would create one of the world`s largest aviation partnerships.
Paris, Sept 30: Air France has approved plans to acquire rival Dutch Airline KLM, a board member said. The Union would create one of the world's largest aviation partnerships.
The French carrier's board, in a meeting lasting over three hours yesterday, approved a letter of intent that will be given to the Dutch carrier's board, which also met separately last night, said Yvon Touil, a union official who sits on the French carrier's board.
"The essential thing is that it has begun," he said. He declined to provide details on the value of the offer for KLM other than to say the price "is exorbitant. We are overpaying. It is too expensive."
Details will be released today by Air France, he said. Another union leader who met earlier with Air France managers said the proposal calls for Europe's second- and fourth-largest carriers to unite beneath the same corporate umbrella but stops short of a complete merger.
Francois Cabrera, of the CFDT union, said Air France and KLM would create a holding company and unite by becoming its subsidiaries. They would retain their separate brand names for at least eight years. But the proposals do not spell out what would happen after that, said Cabrera, appearing to leave open the possibility of a full merger in future.
"The wedding plans have been announced," Cabrera said. He said the deal could be concluded by late march or early April.
Bureau Report
"The essential thing is that it has begun," he said. He declined to provide details on the value of the offer for KLM other than to say the price "is exorbitant. We are overpaying. It is too expensive."
Details will be released today by Air France, he said. Another union leader who met earlier with Air France managers said the proposal calls for Europe's second- and fourth-largest carriers to unite beneath the same corporate umbrella but stops short of a complete merger.
Francois Cabrera, of the CFDT union, said Air France and KLM would create a holding company and unite by becoming its subsidiaries. They would retain their separate brand names for at least eight years. But the proposals do not spell out what would happen after that, said Cabrera, appearing to leave open the possibility of a full merger in future.
"The wedding plans have been announced," Cabrera said. He said the deal could be concluded by late march or early April.
Bureau Report