Air Transport World

Air France, KLM look to complete merger by March.

Air France and KLM expected to take their proposed consolidation agreement to the European Commission at the end of last month as the carriers proceed toward a goal of completing their historic combination next March. Under terms of a letter of intent announced Sept. 30 and finalized last month, the two agreed to the creation of Europe's largest airline group via a holding company structure to be called Air France-KLM.

Each will continue to operate under its own brand identity for the present, The merger will be accomplished through a share exchange that values the Dutch airline at 16.74 [euro] per share or 784 million [euro] ($914 million). Assuming 100% acceptance of the deal, current KLM common shareholders will own 19% of the enlarged group. …

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