Abu Dhabi’s Etihad Airways and Air France-KLM have begun discussions about revenue sharing to deepen their partnership, executives of the Franco-Dutch airline group have revealed.
The airlines signed a limited agreement in October 2012, which has since expanded to more destinations but has not moved beyond code-sharing.
KLM CEO Camiel Eurlings said the airlines had a “good” relationship and they were working to deepen it further.
“We are progressing slowly and surely,” he said on the sidelines of the International Air Transport Association (IATA) annual general meeting in Doha.
“We are talking about revenue sharing. Step by step that relationship is improving.”
Air France chairman and CEO Alexandre de Juniac said they were “always” looking to deepen the joint venture.
“Things are not at the same stage as we are with (American airline Delta) so we have to improve that,” he said.
De Juniac also said he expected Etihad’s much-anticipated investment in struggling Italian carrier Alitalia would likely be “friendly”, in which case it would also allow for stronger ties with Air France-KLM.
Etihad and Alitalia confirmed on Sunday the UAE carrier would buy up to 49 percent of the Italian business, which faced bankruptcy. The deal is yet to be approved.
Air France-KLM, which owns 7 percent of the Rome-based airline, had made an offer to inject €300m ($408m) with conditions to restructure but the offer was rejected.
Etihad’s conditions are believed to be the same.
When asked whether he was disappointed that Alitalia had accepted the conditions from Etihad but not the Air France-KLM proposal, de Juniac said: “That’s the way it is.
“They’re also interested in money and I had no money to invest.”
He expected Etihad to work with the other shareholders, including his airline.
“It’s not in the interest of anyone to reduce or harm the partnerships we have with Alitalia,” de Juniac said.
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