/ 16 August 2001

AIR AFRIQUE II TO SPREAD ITS WINGS

AFRICAN heads of state agreed on Tuesday to liquidate troubled Air Afrique and form a new regional airline with Air France as the majority shareholder – but with the original name and logo. The decision, based on a proposal from shareholder Air France, was announced in a statement after a last ditch meeting of the airline’s 11 partner nations. Details were sketchy. But Air France will hold 35% of the new airline, while the 11 partner nations will have 22% to 28%, and other investors the rest. Air France currently holds 11%, compared to 68% for the African members. Pilot and other employee unions of Air Afrique oppose the restructuring plan, which they say is identical to one already advocated by the World Bank – and earlier rejected by African leaders. – AFP