Air France Won't Comment On Report of Partner Talks
May 02, 2011
PARIS -- State-owned airline Air France, which has acknowledged that it is seeking a U.S. partner, declined comment on a French newspaper report that Northwest Airlines and USAir are possible candidates. Both those U.S. carriers have existing trans-Atlantic alliances, but those ties have been strained by litigation. French business newspaper La Tribune Desfosses quoted a source close to Air France as saying it had recently started discussions with Northwest, but that this could actually be a ``smokescreen'' for negotiations with USAir. The culture at USAir was closer to that of the French firm, the report said. Air France in May confirmed that it had engaged in talks with four U.S. airlines for an alliance partner, which included American Airlines, United Airlines, Delta Air Lines and Continental Airlines. A spokeswoman for Air France declined to comment on the newspaper report. Airline analysts say that the French carrier needs a U.S. partner in light of the recent alliance between German carrier Lufthansa Airlines and United, and the proposed alliance between British Airways and American. Northwest is currently allied with KLM Royal Dutch Airlines, but that relationship is strained over a ``poison pill'' device adopted by Northwest that caps KLM's stake and KLM's resulting lawsuit. Relations between USAir and British Airways, which holds a 24.6% stake in USAir, have been shattered by the U.K. carrier's planned alliance with American. Last month, USAir filed a lawsuit in a U.S. court, seeking damages and an order that British Airways divest its stake.
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