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The Air France crash that killed 228 people may be the most costly airline disaster since 2001 as insurers led by Axa SA compensate victims’ families and pay for the loss of the plane.

The families are entitled to the equivalent of at least $150,000 for each of the passengers.

The cost to Air France-KLM’s pool of insurers, which includes Allianz SE and American International Group Inc., will depend on estimates of the travelers’ nullified lifetime earnings and any negligence demonstrated by the airline.

source: Bloomberg

The Airbus A330 ploughed into ­thunderstorms and heavy turbulence four hours into an overnight flight from Rio de Janeiro to Paris earlytoday . ­Fifteen minutes later, the aircraft reported ­electrical faults through an ­automated message. Then nothing.

In total 61 French people and 58 ­Brazilians were among the passengers on board AF flight 447, as well as 18 Germans and at least a dozen other nationalities. Seven children and a baby were aboard, as well as 12 French crew. There were slim hopes of survivors.

“‘It’s a tragic accident. The chances of finding survivors are tiny,”‘ said a sombre French president, Nicolas Sarkozy, at Paris’s Charles de Gaulle airport.

source: Guardian.co.uk

Air France-KLM and Alitalia have reached an agreement to strengthen their partnership cemented by Air France-KLM taking a minority stake in Alitalia. This agreement will give Air France-KLM greater access to the Italian market thanks to Alitalia which, following its acquisition of Air One, has reinforced its position on the domestic market.

source: Easier

Air France-KLM filed a complaint to the European Union on Thursday over Austria’s plans to sell its national airline to German carrier Lufthansa, saying the deal depended on unfair state aid.

Air France-KLM said a decision by the Vienna government to cancel a 500 million euros ($659.5 million) loan to Austrian Airlines as part of the sale to Lufthansa had not been on the table when Air France-KLM was itself considering bidding for the airline.

source: Reuters

France faces more transport disruption this week as the Air France strike continues. Workers are protesting against government reforms to raise the retirement age of flight crew members up from 60 to 65 years of age.

So far the strike has affected over 35% of overseas flights and is estimated to cost Air France more than 100m euros.

source: lost-in-france.com

The airline has announced its intention to challenge Eurostar, whose monopoly comes to an end at the start of 2010, when new EU rail laws come into force.

Air France said: “‘It would seem logical to replace some air transport services with a rail transport solution so that we can continue to provide our customers with a global offer, meeting both their short-distance and intercontinental travel needs.'”

The carrier said its plans were in their early stages and that it had not yet worked out which routes it might run.

source: Sky News

With the high price of fuel raising the cost of flying, Air France is looking into replacing some of its short-haul European flights with high-speed rail service in partnership with a French train operator, a move that analysts said could lead to significant savings.

Air France spokeswoman Brigitte Barrand said the French flag carrier and Veolia Transport “‘are examining the possibility of concluding a strategic partnership aimed at introducing a new player in the European high-speed rail sector.”‘

fuente: IHT.com

Air France-KLM has offered a share swap and a capital increase of €750 million (US$1 billion) as part of its bid for Alitalia, the chairman of the Franco-Dutch airline was quoted as saying.

The group would renew Alitalia’s aging fleet and cut up to 1,700 jobs, Jean-Cyril Spinetta was quoted as saying in Italian newspapers Sunday.

Alitalia is scheduled to hold a board of directors meeting Tuesday to announce a decision on which sole bidder to open negotiations with. The Italian government, which has a 49.9 percent stake in the struggling airline, met earlier this week but failed to decide on a preferred bidder.

source: International Herald Tribune

A Frenchman who weighs 170 kilograms (375 pounds) has won a court case against Air France after it made him buy a second seat on a flight from New Delhi to Paris, he told AFP.

Jean-Jacques Jauffret, a 43-year-old screen-writer, said he was deeply humiliated when airline staff measured his girth with wrapping tape in front of other passengers at New Delhi airport.

source: Forbes

Air France has filed a law suit against the Irish low-cost airline with the Bobigny court of first instance in France, and is seeking compensation for damages.

”Ryanair has broadly advertised to the press that it is launching proceedings with the European Commission denouncing the alleged collusion between Air France and two other European airlines,” Air France said.

”It is basing its complaint on the mere fact that Air France and the two airlines concerned increased their fares on the same day, a few hours apart, following implementation of a fuel surcharge,” it added.

Air France said it considers the facts ”slanderous accusations” not only because they are ”pure fabrication” but also because ”Ryanair deliberately leaked the accusations to the media.”

source: Forbes