BRITISH AIRWAYS AND KLM EXTEND MERGER TALKS
British Airways and KLM Royal Dutch Airlines said that they have agreed to extend the exclusivity period for their talks about a possible combination of their businesses.
The announcement follows industry speculation that the talks were close to collapsing.
“Constructive discussions have taken place and important progress has been made,” the two European airlines said in a joint statement. Both parties said that they “recognize that a business rationale for a potential merger exists.”
A combination of British Airways and KLM would be the most complex transaction in the aviation industry, the two airlines said.
British Airways and KLM have agreed to allow for an additional several weeks to continue to discuss the proposed deal.
The BA/KLM merger discussions, believed to aim at a takeover of KLM by BA, started in June.