Air France in link-up talks with KLM.

KLM, the Netherlands-based airline, and Air France are in talks about a wide-ranging collaboration, to be underpinned by the French group taking a stake in its Amsterdam-based rival, according to French business paper Les Echos, which said an outline agreement could be signed before the end of the year. The deal would underpin plans by the French government to reduce its majority stake in Air France and would take effect after the French government's shares sale. KLM has a market capitalisation of € 455 million, Air France is capitalised at € 2440 million euros. (source: Les Echos)
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