Thursday February 14, 07:58 PM
Air France-KLM eyes Delta-Northwest venture
PARIS (AFP) - Air France (Paris: FR0000031122 - news) -KLM, the world's leading airline, said Thursday it was prepared to invest in a tie-up between US carriers Delta and Northwest.
Air France-KLM managing director Pierre-Henri Gourgeon, speaking to analysts during a tele-conference, said his company was also ready "to do everything possible to back this alliance."
But he declined to say the size of the stake the French-Dutch carrier might take in any Delta-Northwest combination.
"It will be a reasonable investment and the clearest means of consolidating our transatlantic activities," he said.
Under an "Open Skies" agreement last March between the United States and the European Union, a European airline such as Air France-KLM can hold as much as 50 percent of the capital of a US peer and 25 percent of the voting rights. Such investment levels were not possible previously.
Gourgeon said an announcement regarding the Air France-KLM stake would be made whenever the Delta-Northwest deal is disclosed.
Air France, KLM, Delta and Northwest are already members of the Sky Team alliance under which routes and flights are shared.
For Air France-KLM, "to have a major partner... in Sky Team can only be beneficial," commented one French transportation analyst.
The proposed participation would also be good for Delta and Northwest, both of which emerged from bankruptcy proceedings last years, as the arrangement could yield savings.
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