PARIS, Aug 22: French national carrier Air France says that Asia has become a “priority region” for its operations, and that this objective will play a central role in its upcoming privatization, a process that should see it ally itself with Malaysian Airlines and other carriers operating in the South Pacific, where already Air France has an important presence in such countries as China, Japan, Cambodia and Vietnam.

It is with this objective in mind that French government authorities have decided to favour a privatization scenario, which would see KLM, the Dutch airline, acquire 15 per cent of Air France once the privatization is authorized, perhaps as early as this Fall.

At that time, the French government has already let it be known it is willing to sell as much as 34 per cent of its stake in Air France, bringing down its share from 54.4 pre cent at present to “approximately 20 per cent.”

With the 15 per cent stake acquired by KLM — which would take the form of an exchange of stock — Air France, claim the governmental authorities responsible for the present scenario, would continue to have a stable shareholder base, which would include not only KLM and the French State (whose combined stake would total 35 per cent), but also Air France personnel who presently hold close to 13 per cent and should acquire additional percentage points once privatization is underway.

With the arrival of KLM, not only would Air France be able to expand its operations with regard to Northern Europe and see the Dutch airline become part of the Skyteam alliance which Air France founded with Delta, also the arrangement would permit the French airline to significantly expand its presence in Asia, and this because of the Dutch carrier’s priority links with Malaysian Airlines.

Although for the moment neither Air France nor the French government wants to comment on the proposed scenario, its elaboration is sufficiently advanced that KLM has already summoned its employees to a special meeting during which they will be briefed on the company’s future, and notably the “arrival of KLM within Skyteam,” which is indeed part-and-parcel of the arrangement being planned with Air France.