Air France has made a firm offer for British Airways' loss- making subsidiary Air Liberté in a move which, if successful, would consolidate its hold on the French domestic market and bring with it an extensive route network to overseas French territories.
A takeover would increase Air France's slot holding at Paris Orly from 42% to more than 60%, which would be likely to attract European Commission attention. Air Liberté lost Fr250 million ($37.3 million) in 1998-9.
SAirGroup, meanwhile, is emitting conflicting signals about its Air Liberté interest. A senior source confirms talks have taken place, but the group denies BA contact.
Source: Flight International
