Air France and KLM have announced an alliance to form what they said would be Europe's leading airline group.
The creation of Air France-KLM would form an aviation giant with annual revenues of about £14 million, Air France said in Paris.
KLM's board unanimously approved the transaction, the statement said.
Under the terms of the deal, the French government's 54.4% stake in Air France would be diluted to 44%, the statement said - a step that moves the carrier further toward the government's goal of privatisation.
The group will serve 226 destinations worldwide, Air France said, operating a fleet of 540 aircraft and employ about 106,000 people. The group will maintain two operating companies.
As a result of the Air France-KLM partnership, the Skyteam Alliance will become the world's second largest alliance, the statement said. The two companies expect to sign the transaction agreement in the next few weeks.
The union, the first between major European carriers, comes as many airlines are seeking to survive a downturn in travel following the September 11, 2001, terror attacks.
Major airlines have also suffered because of wars in Afghanistan and Iraq, outbreaks of severe acute respiratory syndrome and tough competition by no-frills rivals like Ryanair and easyJet.
The statement said that the combined group could be "reinforced by the potential integration of Alitalia," Italy's flagship carrier.
Alitalia has given its blessing to the new partnership and said it would sign several agreements with the two airlines to lay the groundwork for future integration. Alitalia is already in the SkyTeam alliance with Air France and Delta Air Lines, but has said in the past that it wants to join in a three-way alliance with KLM to help it increase productivity and remain competitive in a global market.

here you can find it all...it's in english  

http://www.klm.com/generic/bin/145_34674.doc