Bankrupt Aigle Azur’s unions seek more time for Air France talks

Staff representatives at bankrupt French airline Aigle Azur have asked for more time to discuss a takeover by Air France-KLM at a court hearing yesterday, as the field of potential buyers narrowed, the CFDT union said. Air France, which submitted a bid last week, has agreed to combine its offer with Air Caraibes parent Dubreuil group, two sources told Reuters, confirming French media reports.

Air France wants to buy Aigle Azur’s medium-haul business serving Algeria and the surrounding region, along with valuable take-off and landing slots at Paris Orly. Air Caraibes has bid for the long-haul operations to destinations including Brazil. The CFDT and CFTC unions together representing a majority of Aigle Azur’s French staff also offered to renegotiate contract conditions in order to avoid a liquidation.

Air France declined to comment. A spokeswoman for rival bidder easyJet was not immediately available. A third offer led by a former head of Air France’s Hop! unit has been withdrawn, people with knowledge of the process said. Higher fuel costs and stiffer low-cost competition have led to a recent wave of bankruptcies among smaller European airlines including Air Berlin, Germania, British-based Monarch, Latvia’s Primera Air and Swiss SkyWork.