P.M. BRIEFING : 3 Firms Set Up European Airline

Belgium’s Sabena S.A. said today it is setting up a new airline company with two other European carriers, British Airways and KLM Royal Dutch Airlines.

Sabena S.A., the holding company for the Belgian carrier, will own 60% of the new company, to be called Sabena World Airlines. British Airways and KLM will each own 20% of the new business venture and each will pay $54 million for their stake, the company said.

British Airways said the new corporation will create the “first truly European airline.”

The new company will link the operations of the three airlines into a tight network allowing same-day round-trip travel between 75 European cities around the new Euro-hub center at Brussels’ Zaventem International Airport.

The new corporation will not affect the existing structure and operations of the three European airlines, nor will it result in layoffs at Sabena, the Belgian carrier said.