Hi McDoo,
Actually in the FT just over a week ago, as follows:
"Efforts to maintain the regional African airline serving France's former colonies have collapsed amid sharp differences over the role of Air France and how to cut costs at the long-troubled Air Afrique.
Last week, representatives of the 11 ex-French colonies that formed Air Afrique in 1961 agreed to close the existing company after six months of fruitless negotiations. They said they would try to relaunch a regional airline, which would probably no longer have monopoly rights on some routes.
The closure of Air Afrique is likely to be approved at a shareholders' meeting at the end of the month. It is expected to lead to increased emphasis on national airlines forging their own links with Paris, although the French government is under political pressure to find a solution that will preserve the close ties between West Africa and the former colonial power.
In August, Air France offered to swap its existing 11.8 per cent stake in Air Afrique for a 35 per cent holding in a new airline based on a business plan that would see the airline operate a hub system, drop some unprofitable routes and have an independent management. To secure this independence, the French carrier wanted the 11 states that control 68.4 per cent of the existing airline to own about 20 per cent in a new airline and bring in more investors from the private sector.
However, the African states appear to have run into a dispute about where cuts should be made and whether some states might be left without direct flights to Europe. In turn, African ministers have accused France's national carrier of complicating Air Afrique's situation by adopting an ambivalent attitude. Air Afrique employees have also laid the blame on Air France, recently staging strikes to block the airline's operations in African airports.
On Friday, Laurent Gbagbo, Ivory Coast's president, said: "If Air France, to our great regret, does not want to work with us, we will continue the project with other technical partners."
The problems of Air Afrique have been exacerbated by the downturn in the airline industry following the terrorist attacks on the US. Apart from a small fleet of aircraft operating regionally, Air Afrique has only one aircraft for long-haul flights, compared with six a year ago. This makes it one of the world's most over-staffed airlines, with a workforce of 4,000. It has debts of Euros 510m (Pounds 315m).
Officially, Air France says it remains committed to maintaining a regional African airline that could help as a partner to develop a hub network in West Africa.
But the problems of Air Afrique come at a time when Air France appears to be flourishing on its own in Africa as it benefits from the demise of European rivals such as Swissair and Sabena, which had a strong presence on African routes. In December, Air France's traffic on routes to Africa and the Middle East rose 13.6 per cent. For more reports see <a href="http://www.ft.com/mideastafrica" target="_blank">www.ft.com/mideastafrica</a>
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