Air France Makes Offer for KLM Valued at $913 Million

[MaineDem]

Sept. 30 (Bloomberg) -- Air France agreed to buy KLM Royal Dutch Airlines NV for 784 million euros ($913 million) in stock in Europe's largest airline takeover as growth in demand for travel slows and competition from low-cost carriers increases.

Air France, Europe's second-largest airline, is offering the equivalent of 16.74 euros for each share of KLM, the region's No. 4 carrier, Air France Chief Executive Jean-Cyril Spinetta said. Air France shares fell as much as 7.5 percent and KLM rose as much as 21 percent. The Air France bid is 40 percent greater than KLM's closing price yesterday.

Air France and KLM combined will be the world's largest airline by revenue, with sales of 19.2 billion euros and 103,851 employees. Airlines are facing an estimated $10 billion in losses this year because of decline in demand for air travel.

http://quote.bloomberg.com/apps/news?pid=10000006&sid=alcAZbfUEUMA&refer=home

[Commie Pinko Dirtbag]

1. Ahhh, the wonders of megacorporate consolidation

It happens everywhere. :(

[rman]

2. KLM accepted the offer, the deal is finalized

source: teletext, The Netherlands

[DemExpat]

3. As one who has flown KLM since 1957 I'm sad to hear of this.....

but realize that this was the only option for it to be able to continue to exist in the future.....:-(

:DemEx

[alexwcovington]

4. Then Northwest IS a member of SkyTeam now...

Not just a Delta codeshare partner

[alexwcovington]

5. Hmmm... this is fishy

From nwa.com:


Northwest's and KLM's trans-Atlantic joint venture, the airline industry's most advanced alliance, will continue in place pursuant to the long term agreement between KLM and Northwest. Northwest will continue to serve Schiphol Airport as its main European hub.

The Northwest/KLM joint venture will operate on a ‘business as usual’ basis and will continue to compete, as it does now, against the Air France/Delta alliance.


Compete against a sister airline?!! Not likely in my opinion.