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Air France, KLM to create joint holding company
Paris, Sept 18: Air France and Dutch carrier KLM have agreed on the framework of an arrangement that would link the two through a common holding company, and could become the biggest airline group in Europe, a Union official said.
Paris, Sept 18: Air France and Dutch carrier KLM
have agreed on the framework of an arrangement that would link
the two through a common holding company, and could become the
biggest airline group in Europe, a Union official said.
The arrangement calls for both airlines to retain their
names and operating rights, but financial details such as each
carriers' participation in the holding group have not yet been
finalised, Francois Cabrera of the CFDT trade union said,
quoting Air France chairman Jean-Cyril Spinetta.
Spinetta told the Air France works committee that
directors of both groups "agreed on the main principles" of
an accord, which would be "one group with two companies",
Cabrera told a news agency.
The two carriers have not however agreed completely on
their business links, which "should be as strong as possible",
he quoted the Air France chairman as saying.
"That remains a question for discussion," Cabrera noted.
"The cohesion of the group would be ensured by the president of Air France, (respective) cultures would be preserved (and) assurance given to KLM regarding its product," the union representative added.
As far as the agreement's timing was concerned, "they have not yet decided, we'll see later this evening", he said.
Spinetta prefaced his presentation to the works committee with a guarantee the operation would take place without job losses at Air France.
Earlier, Air France has said it was discussing an "intensive" form of cooperation with the Dutch carrier, which would see KLM join the Skyteam Alliance.
Bureau Report
"That remains a question for discussion," Cabrera noted.
"The cohesion of the group would be ensured by the president of Air France, (respective) cultures would be preserved (and) assurance given to KLM regarding its product," the union representative added.
As far as the agreement's timing was concerned, "they have not yet decided, we'll see later this evening", he said.
Spinetta prefaced his presentation to the works committee with a guarantee the operation would take place without job losses at Air France.
Earlier, Air France has said it was discussing an "intensive" form of cooperation with the Dutch carrier, which would see KLM join the Skyteam Alliance.
Bureau Report