Biz Watch

JACK GUEZ/AFP

NOT TO SCALE: Spinetta, left, and Van Wijk toy with the merger

Fly the Hazy Skies
KLM's years-long search for a partner finally ended last week when the loss-making Dutch airline agreed to merge with Air France. Both sides talked up the €784 million deal as an overdue consolidation of European airlines and promised it would create "substantial value for shareholders." Just how it might do so left investors and civil-aviation experts scratching their heads.

Air France CEO Jean-Cyril Spinetta and KLM chief Leo van Wijk said the two firms won't cut staff and will operate as before from their hubs, Charles de Gaulle in...

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