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The French State has sold a part of its equity stake in Air
France-KLM. The sale of 18.4% of the airline's capital followed financial market procedures.
This reduction in the State's holding is in line with the arrangements agreed between the French and Dutch
States under the agreement to merge Air France and KLM.
In legal terms, because the State is selling part of its stake, present and former employees of Air France and its
subsidiaries will be entitled to purchase Air France-KLM shares at a discount under a rights issue reserved for
employees. This is a system that was previously used in 1999 at the time of the partial privatization of Air France.
The law also allows employees who voluntarily agreed to a temporary reduction in remuneration to purchase Air
France-KLM shares under the "wages for shares" programme, which was also used in 1999. This possibility will
be offered to all Air France employees on a strictly voluntary basis in accordance with the agreement signed on
18 September 2003 with six trade unions.
Subscriptions to the employee rights issue and the wages for shares programme will be launched before the end
of February 2005.
Following these transactions, the French State, which has reaffirmed its desire to remain an important
shareholder of the Air France-KLM Group, will own just under 20% of Group equity, down from the previous
44.2%.
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