Air France Look At Merger Options

Published: 18/09/07

The Chairman of Air France KLM confirmed yesterday that the airline is considering potential mergers with either Alitalia or Iberia.

As one of the largest airline operators in the world Air France KLM have the financial backing to make significant investments in a suitable merger partner, which is ideal for either Iberia or Alitalia since both these operators have had troubled times recently. The key for Air France is to find a viable option, rather than one that will simply cost them money. This is why they did not bid for Alitalia during the recent auction attempt by the Italian carrier. At the time Air France did not feel the business was in a position to invest in, although the restructuring operation now underway is changing that.

Looking at Iberia, the airline is already in a good position and it is the management that feel a merger is inevitable who are looking to take steps early rather than wait until they have less room to manoeuvre. At the moment Air France are looking at the options they could have with the Spanish airline.

Whichever way it goes it is sure that Air France will make further moves into the European airline marketplace. As well as the extra coverage they would have around Europe there is potential for adding services such as flights to Brazil, Mexico and so on that are currently lacking.

Author: airlinenews@googlemail.com