Airline merger talks reach 'critical points'

Air France and KLM Royal Dutch Airlines are still negotiating “critical points” in a merger that was expected to be announced this week

In a joint statement, the companies said they were in talks on “an intensive cooperation” but did not specify whether that meant a full-scale merger.

“These negotiations are in an advanced stage,” the statement said. “However, critical points are still under discussion between the parties.”

French financial newspaper L’Agefi had reported that the two airlines would announce the long-discussed merger tomorrow .

KLM has said that talks with Air France have focused on ensuring guarantees about maintaining its brand, its Dutch identity, Amsterdam’s Schiphol airport as a hub and its partnership with US airlines.

The Dutch airline had previously been in alliance talks with British Airways.