Julian Moxon/PARIS

AIR FRANCE has set the end of the year as its preferred deadline for a commercial alliance with a US airline. The French state-owned carrier says that a deal is the final priority in its restructuring plan, which is otherwise coming close to completion, although it adds that it does not "-want to rush anything".

The airline says: "We have achieved a lot. The Paris/Charles de Gaulle hub is now in place and it has become a major attraction for US airlines looking for a European hub with spare capacity."

A new frequent-flier plan has also been established, and new route-structure and yield-management tools created. The airline will not comment on talks, now taking place with US carriers although, it says that "-now, instead of Air France looking for partnerships, we are often approached by them, because we have become a more attractive proposition".

Any deal will not go as far as a shareholding in another airline. "We have seen some problems with other airlines which have taken that path," says Air France. "For now, we are thinking only of a commercial deal built around code-sharing, frequent-flier commonality and so on."

Earlier this year, Air France said that it was in exploratory talks with a host of US majors, including American Airlines, United Airlines, Delta Air Lines and Continental Airlines. Northwest Airlines, has since been rumoured to have joined the list following its boardroom bust-up with Dutch carrier KLM.

The permutations have grown again, following the fall-out from the proposed alliance between British Airways and American. BA's existing US partner, USAir, has signalled its intention of breaking free and rebuilding its own transatlantic presence. BA has given no indication of allowing USAir to go its own way, but the US carrier may force the issue through the legal action now filed against BA in the US courts.

USAir has links to Air France, through its new management team, led by chairman, Stephen Wolf, who spent a year advising the French flag carrier on its restructuring. American has also dropped hints that it could open talks with Air France if the alliance with BA is blocked on competition grounds. Air France declines to comment on the rumours.

Source: Flight International