Air France-KLM starts process for major medium-haul jet purchase

Air France-KLM has launched a tender to “renew and extend” the medium-haul fleets of Dutch unit KLM and the French and Dutch arms of low-cost subsidiary Transavia, a spokesperson for the Franco-Dutch airlines group said on Monday.

The company confirmed the tender after Chief Executive Officer Ben Smith was quoted as saying Air France-KLM had approached Airbus and Boeing about 160 jets.

“We’ve done a little bit in this area, it’s been on the agenda since 2004, but it’s never been put in place as it is now. I am very pleased to be able to put together this order, the largest in the group’s history,” he told the daily Het Financieele Dagblad in an interview.

Smith said in the interview that the Air France-KLM combination had slipped behind competitors Lufthansa of Germany and Anglo-Spanish IAG, which owns British Airways, Iberia and Aer Lingus.

Air France-KLM should strengthen cooperation to be able to respond more quickly to market developments, he said, without specifying which business segments.

“In 2004, Air France-KLM was the largest group in Europe, now we are number three. They have worked more effectively. Obviously we can do that too, but we need to move forward a little faster.”

By Tim Hepher & Anthony Deutsch www.reuters.com