Union Says British Airways Seeks KLM

The FNV Transport Union claimed Tuesday that British Airways is negotiating the takeover of the Dutch flag carrier KLM.

Both British Airways and KLM have refused any public comment on the claims by the Dutch union, which met for three hours with KLM officials Tuesday.

Brokers here discounted reports of a takeover, and said a merger was more likely, noting that the Dutch government owns a 38.2% stake in KLM. But the reports sent KLM stock sharply higher.

After the talks, the union said KLM had denied reports that its president, Pieter Bouw, had signed a letter of intent with British Airways on Tuesday in London to enable a takeover to proceed.

The union stressed, however, that KLM did not deny that takeover talks were proceeding between the two European airlines.

The union is concerned that thousands of its jobs are endangered by a British Airways takeover. KLM has about 26,000 employees.

Despite its relatively small size, KLM plays a significant role in advancing the Dutch image of an internationalist, trader nation.

Its development has paralleled that of Amsterdam’s Schiphol Airport, which the government sees as a future freight gateway for northern Europe.

The union claimed that KLM sources said only the airline’s cargo division would remain intact after a British Airways takeover.

The union also said it had been told in earlier contacts with KLM’s board of directors that a merger could result from negotiations with British Airways.