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News 5/05/2004   

Air France finalises KLM merger deal
 
Air France has completed the purchase of merger target KLM Royal Dutch Airlines, creating the world’s largest airline by revenue and third largest by passenger traffic.

Air France paid EUR784 million ($1.3 billion) for 89.22 per cent of the Dutch airline.

The carriers, which will continue to operate under separate brands, could save EUR495 million ($821 million) a year through joint purchasing and sales synergies.

KLM recorded a loss of EUR460 million ($763 million) last financial year but is expected to post a profit for the year ended March 31.

5 May 2004


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