Air France says that it will only bid for Iberia and Alitalia on the condition that strict return on investment is met.
Speculation has swirled around the French airline and any potential takeover of the Spanish and Italian flag carriers, but in an autumn briefing statement in Chevreux, Air France chief financial officer, Philippe Calavia, made clear what the economic parameters would have to be for any such bid.
Consolidation within the sector is necessary, he conceded, but that Air France KLM would only consider a takeover of Iberia and Alitalia if the group could realise an 8.5% return on capital after tax by 2009-10.
At the briefing, Calavia presented an upbeat assessment of the group”s activities and revealed that a 5% winter capacity increase would target long-haul routes.
”As shown by traffic numbers in July and August, activity levels remain dynamic, [while] first quarter results were in line with expectations,” he said.
”The successful roll-out of the ”Challenge 10” cost-savings programme, makes us confident in our ability to achieve our objective for the full year of increasing our operating income."