Monday, 18 February 2008:In a report by Bloomberg, Air France KLM is looking at investing in a combined Delta-Northwest airline when the two carriers merge.
Citing sources close to the matter, Bloomberg reported that Air France executives met with Delta last month to discuss how Europes largest carrier may support the Delta- Northwest merger.
Air France Vice Chairman, Leo van Wijk told reporters at the end of January that his company would do whatever possible to aid the merger.
Theres no downside for Air France in this, Jon Ash, InterVistas-GA2 President told Bloomberg. It shows their commitment to [Skyteam], and its a good strategic investment.
While the size of Air Frances potential stake is unconfirmed, US legislation pertains that foreign ownership of airlines must not exceed 49 percent in equity and have more than 25 percent voting power.
A combined Delta-Northwest would create the worlds largest airline, blending Deltas trans-Atlantic and Latin routes with Northwests Pacific network. The combined carrier would have hubs in New York, Atlanta, Cincinnati, Salt Lake City, Detroit, Minneapolis and Memphis, Tennessee.
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