Air France-KLM shares fell sharply on Monday as it emerged as a bidder for bankrupt French-based budget carrier Aigle Azur, which left 19,000 passengers stranded when it abruptly halted operations. The offer from the group’s Air France unit was among 14 bids submitted for privately-held Aigle Azur, which was placed was placed under bankruptcy protection on Sept. 2., ahead of a midday deadline, an official with the CFDT union said. Higher fuel costs and stiffer low-cost competition have led to a wave of bankruptcies among smaller European airlines in recent years, including Air Berlin, Germania, British-based Monarch, Latvia’s Primera Air and Swiss SkyWork. An Air France spokeswoman confirmed that it had tabled a bid, declining to give details or further comment. Air France is seeking to acquire Aigle Azur’s valuable take-off and landing slots at Paris Orly airport and expand services on its main routes to Algeria and Lebanon, sources with knowledge of the offer said. The proposal would also see the French airline hire about 70% of the defunct carrier’s flight crews and cabin staff through a selection process open to all employees, they said. Air France-KLM shares tumbled after a French government official identified it as a likely buyer, and closed 9.8% lower as details of the offer appeared in media reports. French junior transport minister Jean-Baptiste Djebbari said Aigle Azur needs a “serious buyer who can guarantee a maximum of jobs”.<br/>
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Delta has increased its stake in Korean Air’s controlling shareholder, Hanjin KAL, to 9.21%. The US carrier announced in June it acquired a 4.3% stake in Hanjin KAL, with plans to increase this to 10%. At the end of July it held 3m shares in Hanjin KAL, amounting to a 5.13% share. Delta’s latest disclosure to the Korean stock exchange shows it has consistently purchased shares from the open market since August, amassing 2.4m shares at a cost of$58.4m. The two SkyTeam carriers launched an immunised joint venture across the Pacific in May 2018. The partnership has allowed both airlines to add new routes in the market, including from Boston and Minneapolis/St Paul to Seoul Incheon.<br/>