France's largest independent carrier, AOM, has been put up for sale and it is understood that offers have been sent to major European flag carriers, including existing alliance partner Swissair. The sale comes as the carrier also looks to upgrade its long-haul fleet.
AOM's majority shareholder, the Credit Lyonnais bank, is expected to see through the sale before the end of the year, with Air France, British Airways, Iberia and Lufthansa reported to be potential runners alongside Swissair.
Swissair linked with AOM last September and included the carrier in its Qualiflyer alliance grouping, launched earlier this year. Swissair has said that it hopes to acquire a stake of up to 20% in the French airline, but Switzerland's position outside the European Union would rule out it taking a majority stake.
Any further moves into the French market by BA, which has already swallowed French independents TAT and Air Liberté, or Lufthansa, with its existing Air Littoral alliance, is likely to see a strong rearguard action from Air France. None of the airlines has yet commented on whether they will make offers.
AOM posted sales of Fr3.9 billion ($660 million) last year, but has been struggling to improve its profit performance. Its airline operations showed a profit of Fr27 million last year, although the parent holding company posted further small losses of Fr16.3 million, despite the sale of airport services company GSA.
The carrier is also bringing two ex-Air France Airbus A340-200s into its fleet, on lease from the manufacturer's financing arm AIFS on three and five year terms. The aircraft will be delivered early next year to fly to Tahiti and Noumea.
Source: Flight International
