Air France–KLM has entered into a new joint venture deal with Vietnam Airlines. The joint venture is set to begin in November, and is pending the approval of authorities. The two airlines currently have a code sharing agreement that has been in effect since 2010. The new agreement will allow the two airlines to coordinate flight schedules and connecting flights to better serve their customer bases. Air France-KLM, like its counter parts in North America, is trying to increase its competitive position against the airlines of the Middle East Gulf region.
Air France–KLM was created when Air France and KLM of the Netherlands agreed to merge in 2004. As a result of the merger, the French government was able to substantially reduce its stake in the airline. It held 54.4% of Air France before the merger. That was reduced to 44% of the combined airline following the merger. It later reduced its holdings further, first to 25%, and then later to the current 17.6%. In October of 2005, Air France Cargo and KLM Cargo also merged their commercial activities. The new cargo group now operates out of the Netherlands.
Air France–KLM is launching a new low cost operation called “Joon”, and recently re-organized its North Atlantic alliance with Delta Air Lines and Virgin Atlantic. Delta and China Eastern each aquired a 10% stake in Air France–KLM under the new agreement. Air France–KLM also stated it was in advanced talks with Jet Airways of India about a partnership. The airline has had a code share agreement with Jet Airways since 2016.
