Air France takeover of KLM cleared

Air France has been cleared by the European Commission to takeover Dutch KLM and thus create the world's highest revenue-earning airline.

    Even US says it would not oppose the deal

    The airlines agreed to give up take-off and landing slots on flights involving three continents, allaying European Commission concerns about what it called the "first real merger in the European airline industry."

    Air France is spearheading an expected move toward consolidation in Europe's crowded airline sector, hoping to tap economies of scale and expand as the European Union prepares to grow from 15 to 25 nations in May.

    The new Air France-KLM combination will move ahead of Japan Airlines System Corp. as the largest airlines group by revenue and rank third behind AMR Corp.'s American Airlines and UAS Corp.'s United Airlines in passenger traffic.

    US clearance

    The United States, which worked closely with the Commission, said after Brussels acted that it would not oppose the takeover deal.

    Air France shares rose 1.79% to 15.39 euros on Wednesday while KLM ended up 1.02% at 16.89 euros, its highest finish since May, 2002.

    The approval for takeover came a decade after Air France nearly went bankrupt, staying alive only because it won permission from the Commission to receive $3.84 billion in aid from the French government.

    The French state will own 44%, other Air France shareholders 37% and current KLM shareholders 19% of the enlarged company. Air France and KLM will retain their national identities, brands and hub airports.

    KLM will remain Dutch and keep its international landing rights as the Dutch government and other entities will hold 51% of its voting rights for three years.

    SOURCE: Agencies


    Why some African Americans are moving to Africa

    Escaping systemic racism: Why I quit New York for Accra

    African-Americans are returning to the lands of their ancestors as life becomes precarious and dangerous in the USA.

    What happens when the US government shuts down?

    The US government has shut down. What happens next?

    US federal government begins partial shutdown after Senate blocks short-term spending bill. What happens next?

    Why is the West praising Malala, but ignoring Ahed?

    Why is the West praising Malala, but ignoring Ahed?

    Is an empowered Palestinian girl not worthy of Western feminist admiration?