Julian Moxon/PARIS
The privatisation of Air France has officially been launched, with the appointment of the two investment banks which will handle the sale for the French Government. Astake of close to 50%could be sold, including a holding for staff.
The USA's Morgan Stanley and France's Crédit Agricole Indochine will work with the airline's own banks, Lazard and Société Générale, to establish how much of the state's 95% shareholding in Air France should be diluted. The Government has already made it clear that it intends to retain a majority holding in the airline, with sources close to the deal suggesting that this will mean "anything between 51% and 60%".
The competition between banks kicked off at the start of the year once Air France president Jean-Cyril Spinetta had officially asked the Government to begin the sale. A timetable is expected to follow soon.
The value of Air France is likely to amount to between Fr20 billion ($3.3 billion) and Fr25 billion, but the final valuation can only be carried out once the amount of airline stock due to be given to the pilots in exchange for reductions in salary has been agreed. Sources indicate that up to 10% of shares will be handed over in return for a 15% wage cut. The rest of the staff will also be offered up to 4% of the total stock as part of the sale.
A further element in the valuation is the worth of the slots held at Charles de Gaulle Airport, where Air France is developing its hub. This depends partly on the forthcoming European Commission report into slot allocation, which will reveal its position on the "grandfather rights" held by incumbent airlines such as Air France, and on slot trading.
Source: Flight International
