Julian Moxon/PARIS Herman de Wulf/BRUSSELS
Air Liberté and AOM will be merged under the part-ownership of SAirGroup if talks are successful between Air Liberté's current owner, British Airways, and prospective buyer Taitbout Antibes, an ally of the Swissair parent. The move will combine France's second and third largest airlines and create a major competitor to Air France's shuttle operation at Paris Orly Airport.
SAir will also take a majority stake in Belgian flag carrier Sabena, pending Switzerland's ratification of a transport treaty with the European Union (EU). Sabena and Swissair are run almost as one airline, forming the heart of SAir's all-European Qualiflyer alliance.
BA says it is in "exclusive" talks with Taitbout over the sale of its 86% stake in Air Liberté. The Dutch financial institution is controlled by French companies Marine Wendel and Groupe Alpha. It already owns 50.1% of AOM and 17% of Montpellier-based Air Littoral. SAir owns the rest of AOM and 44% of Air Littoral, but cannot hold majority stakes because Switzerland is not a member of the EU.
Sources say Taitbout will pay around Fr500 million ($72 million) for Air Liberté, purchased by BA in January 1997 for £60 million ($95 million) and subsequently merged with TAT European Airlines, acquired by the UK carrier for £17.2 million in 1993. Air Liberté/AOM together transport around 8.6 million passengers a year, against Air France's 37 million, and control 30% of slots at Orly.
Groupe Alpha says the two are "highly complementary", with "few overlapping areas". Air Liberté has an extensive domestic network, while it and AOM both fly to the Caribbean. Both airlines operate McDonnell Douglas DC-10-30s and Boeing MD-83s. AOM has two Airbus A340-300s in service with two on order.
Alpha says Air Littoral, with its extensive European network (including routes operated for Air France), will be included in the new grouping, although not merged with it. "All three will be under the same management so that ground handling, maintenance and other activities can be combined," it adds.
Meanwhile, SAir expects to increase its 49.5% holding in Sabena to 85% by next spring, when the EU treaty is implemented. The Belgian state will retain 15% of Sabena's stock and become the largest single shareholder in SAir, with a 3.3% stake. This could rise to 5.5% should it sell the 15%.
Swissair and Sabena already co-operate closely, with joint fleet purchasing and, through their Airline Management Partnership, joint sales and marketing activities.
Belgian public enterprise minister Rick Daems says SAir's plans for Sabena offer "the best possible option to guarantee the company's development and the growth of the Brussels Zaventem hub". SAir bought a large minority stake in Sabena in 1995, but could not previously take majority control.
Belgium retains the right to appoint a director to SAir's board, and to nominate Sabena's chairman and two directors. SAir has undertaken to guarantee Sabena's "home carrier" status in Belgium and to retain its brand. Guarantees also cover levels of direct flights to Brussels and the future of businesses such as Sabena Technics.
Source: Flight International
