Paris, Sept 27, SPA -- Air France is about to announce a deal with Dutch airline KLM on Tuesday which would see the two companies merge into a French-controlled joint holding, the French newspaper Le Figaro reported Saturday.
French union officials said Air France's board of directors has
been called to a meeting Monday to discuss the planned takeover.
The new holding would have the highest turnover of airlines
worldwide Air France - as Europe's third largest airline - achieved a
turnover of 12.7 billion euros (14.2 billion dollars) and KLM about
half that in the last financial year.
French government officials had indicated last week that the two
companies were close to reaching a deal.
Air France reportedly plans to take over KLM completely while the
French government would sell 15 per cent of its 54.4 per cent in the
French airline to KLM. Paris is the main share-holder of Air France
but intends to reduce its stake substantially