Summary

AF-KLM is struggling like every other carrier.

Analysis

The idea of taking a stake or the entire CSA is clearly a grab at anything available. AF-KLM are worried at the growth of Lufthansa. BA and Iberia are off on a tagent that will likely hurt both of them. AF-KLM feels somewhat squeezed betwen these two groups - hence its not so clever move with Alitalia.

AF just delayed delivery of two A380s and will likely slow down 777 deliveries also. The company is trying to preserve cash - a smart thing. The CSA deal is a total distraction. They could let it go and lose nothing. If the state does not support it, AF-KLM can go back later and swopp in anyway. At least when the company is more flush.

Note Lufthansa did a very clever move creating Lufthansa Italia. Why does AF-KLM not follow that model in the Czech Republic? Low risk and low cost but at least a placeholder.

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