Behind has been a long negotiation process, first initiated by KLM-years-with British Airways for it to acquire the Dutch company to achieve a merger of both. However, legal issues such as KLM's traffic rights forced the two companies to give continuity to the talks, and only codeshare agreements with other companies and their alliance with the U.S. Northwest, KLM allowed to stay afloat with many difficulties, burdened by its poor economic situation in its fiscal 2002 reached a negative 133 million euros of losses.
When British Airways was interested in the purchase of KLM, is also losing its identity as a Dutch company, have also had to renounce all its international traffic rights, more than enough grounds to suspend the negotiations.
Union of Air France and KML
It took time for the European Union approve and allow any EU airline could fly from any country of the same to another party. To do this, first, bilateral agreements should be amended as to matters of nationality of the EU airline. Once given approval by the European Union, was that KLM and Air France began to consider and discuss aspects of a possible merger of both.
Since then, companies have had to overcome problems and issues related to the reduced competition on routes between Paris and Amsterdam and Europe and the United States, where they competed both companies. To achieve this approval, Air France and KLM have had to give up to 47 pairs of slots per day, and allow other airlines who wish to make a stopover to the United States or other destinations outside the EU.
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