Alitalia to begin discussions with Air France to join Air France-KLM group

Airline Industry Information, Sept 30, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

Italian carrier Alitalia is to begin discussions with Air France to join the newly announced Air France-KLM Group linkup.

Air France and KLM Royal Dutch Airlines have announced a share swap deal, which will create Europe's largest airline. The French carrier will take a 37% stake in the new holding company, while KLM will hold a 19% share. Under the agreement, the French government's stake of 54% will be reduced to 44%. The Dutch government - which approved the deal last week - will retain its present stake in KLM.

According to Alitalia, the talks are expected to start "as soon as the Italian state cedes control", The Associated Press reported.

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