KLM Royal Dutch and Air France talks at critical stage

KLM Royal Dutch Airlines NV said talks on an alliance with Groupe Air France SA have reached a critical stage but are confident that they will conclude successfully.

Spokesperson for the airline, Bart Koster said: "Negotiations are in a crucial stage and we have no reason to believe they will fail."

There has been recent heightened media speculation regarding the alliance.

It has been reported that the government will today officially back an alliance of the airlines now that Dutch concerns about the future of Amsterdam's Schiphol Airport have been removed.