Air France-KLM knocked by Aigle Azur rescue bid

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/>