Air France KLM cautions on full-year EBIT target; gets approval for VLM Airlines merger
27 Oct 2008
Air France KLM has said that it would be ''very difficult'' for it to attain its €1 billion ($1.28 billion) full-year EBIT target.
The group was reported as having said that on account of the current economic conditions, it was finding it ''very difficult'' to attain its EBIT target, but did say that its operating result would remain in the black ''comfortably'', so long as market conditions ''do not deteriorate."
Air France KLM had reported an operating profit of €1.41 billion for the last fiscal year which ended on 31 March.
The group also intended to increment capacity during the forthcoming winter season, as well as its summer 2009 schedule by anywhere between one and two per cent. This is in contrast with its earlier stand, made during discussions with unions, that there would be zero growth in the coming two years. (See: Air France–KLM warns of nil growth in capacity till 2011)
VLM airlines acquisition approved
Air France KLM's acquisition of VLM Airlines has also been cleared by the UK Office of Fair Trading (OFT). In a statement on its website, the airline said that the UK Office of Fair Trading (UK Competition Authority) had announced its approval of Air France KLM's acquisition of VLM Airlines, which is a former subsidiary of the Dutch company Panta Holdings B.V. by the Air France KLM group.
VLM Airlines, the statement said, is one of Europe's leading regional carriers catering principally to business travellers. VLM used to operate a fleet of 18 Fokker 50 out of London City Airport, which is the hub for the majority of its flights.
The clearance by the OFT, Air France – KLM said, opens ways for close cooperation between VLM Airlines and regional carrier CityJet, a 100 per cent subsidiary of Air France that is already operating out of London City Airport.
