Monday, October 27, 2008

AirFrance - KLM may buy Alitalia

AirFrance-KLM may, as soon as next week, buy a 20%-25% stake in a "new" Alitalia, the company which should emerge next week from the remains of the collapsed Italian flag carrier Alitalia according to a published report by the Dutch newspaper, De Telegraaf .
Rumor is that Morgan Stanley is also considering investing in the resuscitated airline, alongside a consortium of Italian investor’s final attempt to rescue Alitalia from bankruptcy protection. The government has appointed Augusto Fantozzi, to restructure, liquidate the company, or perhaps the Franco-Dutch giant will eventually absorb Alitalia. see also the De Finaciele Telegraaf. and here

The Delta-Northwest merger may also happen soon in a new round of consolidation in the troubled industry.
The merger would expand Delta's access to the fast-growing Asian market and create one of the world's largest carriers.
My favorite airline, Continental Airlines is the world's fifth largest airline. I hope they don’t grow too big to treat little me well.
A combination of Delta and Northwest would have nearly $30 billion in annual revenue and about 80,000 employees, knocking American Airlines parent AMR Corp. from its position as the No. 1 U.S. airline and posing a challenge to the world's largest, AIR France-KLM.

In June 2008, airlines were knocked back as oil prices spiked up, but now that gas is low they should do well. On 27th October 2008, La Porte TEXAS had unleaded gas for 1 dollar and 99 cents, so we really should see lower airfare but don’t hold your breath.

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