Air France and KLM merger expected

Air France and the Dutch national carrier KLM are set to create an alliance, which would create the biggest force in the European airline industry.

The deal, to be announced on Tuesday, will probably take the form of joint management and cross-shareholdings, with a full merger a more distant prospect, the BBC said.

The combination of the two carriers would create a powerful international network around two hub airports: Paris Charles de Gaulle and Amsterdam Schiphol, the FT said.<...