Air France/KLM deal gets green light
The European Union has reportedly given the green light to a merger between Air France and KLM, which will create the largest airline group in Europe if it goes ahead. According to reports, the merger was agreed because the two carriers’ route networks are “largely complimentary” – and after the airlines agreed to give up some 94 take-off and landing slots between them. The deal will have significant knock-on effects in the US because Air France is already allied to Delta Air Lines and KLM to Northwest, but it is claimed that authorities in Washington have “given their backing”. At least one other airline will benefit from the slots that have been given up, with routes including Amsterdam-Paris, Amsterdam-Rome, Amsterdam-New York, Paris-Detroit, Amsterdam-Atlanta and Paris-Lagos; the EU would reportedly prefer it if one carrier takes up the majority, if not all, of these slots. British Airways’ reaction to the deal was guarded; a spokesman is quoted as saying: “We do not oppose the merger in principle but we just want to look at the decision in detail to ensure that it addresses the competition issues raised.” Report by Tim Gillett, News From Abroad
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