Air France in partnership talks with Etihad

Dubai Etihad Airways is in talks with Air France-KLM Group for a potential commercial alliance according to the French carrier's chief, who said his airline has been approached by the Abu Dhabi carrier and that he is keen to explore options.

"Etihad's leaders have been asking for a commercial partnership with Air France. I asked for an opening of informal talks to see if we could develop such a cooperation," Air France-KLM's Chief Executive Officer Jean-Cyril Spinetta was quoted as saying yesterday in Paris by news agencies.

Etihad Airways did not confirm the report.

"Etihad Airways talks regularly and frequently to many airlines and a range of other businesses from all over the world about issues and opportunities," an airline spokesperson told Gulf News in an emailed statement.

Network growth

Etihad chief executive James Hogan has in recent weeks, however, stated that the airline plans to aggressively grow its network and reach by the way of tying up with other carriers across the globe.

Etihad Airways has 35 partners and is spending $400 million on stakes in airberlin and Air Seychelles.

The carrier is also weighing the possibility of acquiring a stake in Ireland's Aer Lingus Group.

It is, however, not considering a stake in debt-laden Indian carrier Kingfisher, as Hogan said earlier this week, saying he'd be wary due the regulation of the Indian market.

Targeting $5 billion in revenues in 2012, the rapidly growing airline posted its first annual profit last year with net income of $14 million and plans to grow its fleet to over 160 planes by 2017, from the current 64. The Air France-KLM Group, Europe's biggest airline, reported a full-year loss as a sluggish economy and high fuel costs crimped earnings and said results for the current six months will show a further deterioration.

The Paris-based company had a net loss of €809 million (Dh3.90 billion) versus a pro-forma €289-million profit in 2010, it said in a statement.