Air France, Delta pursuing joint-venture talks
Mon Jul 30, 4:13 PM ET
PARIS (AFP) - Air France is pursuing joint-venture talks with US partner Delta Air Lines but has yet to finalise a deal described by a French newspaper as imminent, an airline spokeswoman said Monday.
Air France "is still in negotiations with Delta, but nothing has been finalised," the spokeswoman told AFP in reaction to a report in the financial daily Les Echos.
According to the report, talks between the two airlines, both members of the Skyteam alliance, had progressed and "the agreement being negotiated should be signed in the autumn."
Les Echos said a joint venture "would allow both carriers to go well beyond their current partnership and include a 50-50 split of profits on their main trans-Atlantic routes."
A first stage would take effect starting in April 2008 and include flights between Paris and New York's JFK airport along with service from London's Heathrow airport to US cities, the report said.
A second stage starting in 2010 at the latest would cover the rest of both companies' trans-Atlantic flights.
In April, Delta emerged from bankruptcy protection and 19 months of reorganisation, pledging to be a "fierce competitor in a tough industry".
Air France, meanwhile, said in late June that it and five other Skyteam members had asked US authorities for anti-trust immunity on trans-Atlantic services within the framework of an "open skies" agreement between the European Union and United States.
An application was also made for a joint venture agreement between Air France-KLM, Delta, and Northwest "that would create a comprehensive and integrated partnership among the four SkyTeam members across the Atlantic," Air France said at the time.
Mon Jul 30, 4:13 PM ET
PARIS (AFP) - Air France is pursuing joint-venture talks with US partner Delta Air Lines but has yet to finalise a deal described by a French newspaper as imminent, an airline spokeswoman said Monday.
Air France "is still in negotiations with Delta, but nothing has been finalised," the spokeswoman told AFP in reaction to a report in the financial daily Les Echos.
According to the report, talks between the two airlines, both members of the Skyteam alliance, had progressed and "the agreement being negotiated should be signed in the autumn."
Les Echos said a joint venture "would allow both carriers to go well beyond their current partnership and include a 50-50 split of profits on their main trans-Atlantic routes."
A first stage would take effect starting in April 2008 and include flights between Paris and New York's JFK airport along with service from London's Heathrow airport to US cities, the report said.
A second stage starting in 2010 at the latest would cover the rest of both companies' trans-Atlantic flights.
In April, Delta emerged from bankruptcy protection and 19 months of reorganisation, pledging to be a "fierce competitor in a tough industry".
Air France, meanwhile, said in late June that it and five other Skyteam members had asked US authorities for anti-trust immunity on trans-Atlantic services within the framework of an "open skies" agreement between the European Union and United States.
An application was also made for a joint venture agreement between Air France-KLM, Delta, and Northwest "that would create a comprehensive and integrated partnership among the four SkyTeam members across the Atlantic," Air France said at the time.
