Air France is to be one of the first state-owned companies to be privatised by the new French government, transport minister Gilles de Robien said last week. The state owns 54.4% of the carrier and would sell over 30% to bring its share to below 20% "when market conditions allow". But the need to produce accounts before issuing the share offer means this would not be before 2003, says de Robien.
The French government sold about 38% of the carrier in an initial public offering in February 1999. Air France says privatisation will allow it to "face the increasingly tough international competition in the best possible conditions".
Jean-Cyril Spinetta, Air France president, is "no longer opposed to privatisation", the minister told French media. Unions were quick to oppose the proposal, describing it as "a political dogma, which may be supported by [the government], but which is not in Air France's interests". Pilots' union SNPL believes the move will help the airline to respond to the increasing threat from low-cost carriers.
EADS, in which the government owns a minority stake, and Snecma, which is 97% state-owned, are also tipped for privatisation.
Source: Flight International
