Europe's largest air carrier created after merger

Air France and KLM are expected to conclude an agreement today that would lead to the creation of Europe’s leading airline group.

The new group, to be called Air France-KLM, will be eased through via a share exchange offer by Air France for KLM common shares.

The Boards of both companies believe that this proposed combination is “in the best interest of customers, shareholders and employees” of both groups and represents a significant opportunity for further growth.

Jean-Cyril Spinetta, Chairman and Chief Executive Officer of Air France, said: ”We have always been convinced of the necessity of consolidation in the airline industry. This will bring significant benefits to customers, shareholders and employees. Capitalizing on the two brands and on the complementary strengths of both companies, we should, within SkyTeam, be able to capture enhanced growth opportunities.”

Leo van Wijk, President and Chief Executive Officer of KLM, said: “Through this innovative partnership with Air France and our subsequent expected participation in the SkyTeam alliance, we are confident that we have secured a sustainable future for our company.”

Air France and KLM expect to sign the transaction agreement within the next few weeks.


Related UK National News Stories
Click here for the latest headlines.

28 April 2014
MoD Names Five Service Personnel Killed In Helicopter Crash
The Ministry of Defence (MoD) has confirmed the names of the five service personnel who lost their lives following the crash of a Lynx helicopter in southern Afghanistan on 26 April 2014.
28 April 2010
Local Air Traffic Control Applauded
The successfully-run British Isles-wide system of airspace control was this week held up as an example of best practice in dealing with air navigation. Ireland's Minister for Transport, Noel Dempsey has called on Europe to look at how the UK and Ireland cooperate in air navigation, after the disruption caused by the volcanic ash plume.
25 September 2003
Probe continues into two US soldiers at Guantanamo Bay
The US Defense Department is continuing its investigations into two servicemen associated with the confinement facility at Guantanamo Bay, Cuba. Both cases involve personnel assigned to Camp Delta on US Naval Station Guantanamo Bay, where the US is detaining suspected al-Qaeda and Taliban members.
02 June 2009
Debris Found In Search For Missing Plane
Brazilian aircraft searching for an Air France airliner that vanished over the Atlantic Ocean have spotted plane wreckage, it has emerged. A plane seat and other items were sighted 650km (400 miles) north-east of Brazil's Fernando de Noronha island, the Brazilian air force said.
03 August 2005
Passengers escape airliner inferno in Toronto
Passengers on an Air France flight to Toronto, including several British travellers, escaped injury after the jet over-ran the runway, careered into a gully and caught fire. All 309 on board the jet - 297 passengers and 12 crew - managed to escape the blazing wreckage at Toronto's Pearson airport after a crash landing in poor weather at around 8.