By Simon Zekaria - 6th February 2004
European Commission regulators will decide on Wednesday whether to give a green light to the proposed merger between European carriers Air France and KLM.
Amelia Torres, spokeswoman for EU competition commissioner Mario Monti, confirmed on Friday that Brussels will stick to its timetable of February 11 for a decision on whether to clear the deal or open a four-month antitrust inquiry.
"The commission welcomes the consolidation of the airline sector [..] but the matter has not been fully investigated yet," said Torres.
Brussels has already extended its decision date by two weeks on the merger that was notified to the commission in mid-December last year.
The tie-up would form Europe's largest airline with annual revenues of €19.2 billion under a new holding company, Air France-KLM, eclipsing the long-standing market leader British Airways.
But the new entity would keep the two companies' individual brands and networks separate.
The Dutch government holds a 14 per cent stake in KLM, while Paris controls 54 per cent of Air France – falling to 44 per cent after the creation of the alliance.
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