| Journal: TWUK | Section: |
| Title: | Issue Date: 05/06/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
Negotiation talks
Negotiation talks
Air France teams up with BAfor major European alliance
Report by PAUL NORRIS in Paris
AIR FRANCE chairman Jean-Cyril Spinetta is planning wide-ranging talks with British Airways to form a powerful European alliance.New areas to be discussed are expected to include European network co-operation, closer ties on joint Internet businesses and development of more efficient product buying.
Spinetta said the recent appointment of Rod Eddington as BA chief executive gave Air France the chance to explore fresh ways in which the two major airlines can co-operate.
“There are new opportunities for discussion and there is a lot to discuss,” said Spinetta.
He admitted the French national carrier had already held talks with BA this year, while the UK airline was looking for a buyer for its former subsidiary Air Liberte.
Spinetta also revealed he had spoken to former BA chief executive Bob Ayling over joint use of each carrier’s Concorde aircraft.
The Air France chairman would not comment on the formation of a strategic global alliance with BA apart from saying: “Rod Eddington will take his time and make up his mind.” Spinetta added competition authorities in Europe would be unlikely to immediately agree a BA/Air France tie-up without restrictions, although he pointed out the Lufthansa/SAS/Austrian Airlines group had received Brussels’ backing.
Air France is co-operating with BA on the European airline travel portal which will be launched this year. They have also set up a joint e-business unit to cut costs on procurement. Both are also interested in the 550-seater Airbus A3XX.
BA is also in alliance talks with KLM (Travel Weekly May 29). However, Air France offers BA a better European and global network.
United colours: Air France and BA will discuss new ways they can co-operate