French airline giant's sneaky plan to dominate European skies exposed

Air France-KLM expands its reach across Europe with government backing‚ targeting multiple national carriers. The state-controlled airlineʼs latest move aims at Portuguese TAP while questions about fair competition arise

October 27 2024 , 01:21 PM  •  921 views

French airline giant's sneaky plan to dominate European skies exposed

Air France-KLM continues its euro-wide shopping spree‚ making moves that raise eye-brows about fair competition in aviation. The company (which already runs Dutch carrier KLM) bought a piece of SAS last summer and now wants to grab portugals TAP airline during its sell-off

The french-dutch carrier‚ where Emmanuel Macronʼs government holds 28% stake and dutch state owns 9‚9%‚ shows clear signs of becoming a state-backed super-carrier: its trying to build an old-school monopoly across europe

Theres a big problem with this setup - while EU has strict rules about state aid and monopolies they dont seem to apply here. The company gets special treatment: cheaper funding and government backing that other airlines cant match

The airlines financial results tell an interesting story - its share price dropped 82% in past 5 years while competitors like IAG went up 34% (but that doesnt stop government from putting more cash in)

Here are the markets where Air France-KLM already has influence or wants to get it:

  • Scandinavia through SAS deal
  • Netherlands via KLM ownership
  • Portugal with TAP plans
  • Failed attempt at italys ITA
  • Possible future targets in Greece Malta and Poland

The whole situation looks like a throw-back to pre-privatization times when state-owned carriers ruled the skies‚ made deals between themselves and kept prices high - exactly what EU was supposed to prevent from happening again