Air France Said to Narrow CityJet Bidders to Two by Next Month

Air France-KLM (AF) Group wants to narrow the number of bidders for its CityJet unit to two by the end of next month after whittling down the group of possible suitors to six from 10, according to a person with knowledge of the talks.

The offers are for the entire business, including the CityJet name, said the person, who asked not to be identified because the process is confidential. The Paris-based company wants to have one financial bidder and another from the aviation industry on its shortlist, the person said.

“The Air France KLM Group is studying different options for CityJet as indicated in the past,” spokeswoman Brigitte Barrand said today by telephone. She declined additional comment on the selection process.

Air France-KLM, Europe’s biggest airline, has been revamping its regional operations in an effort to end years of losses. Its Brit Air (IAG), Regional and Airlinair are being folded into a single unit called HOP!, which was unveiled last month.

CityJet is based in Dublin. The airline serves London City airport from 22 destinations across Europe, including Amsterdam, Paris, Dresden, Milan and Florence. CityJet employs 85 people in France and is based in Dublin.

The Irish Times first reported the plan of having two final bidders today, citing CityJet employee representatives.

To contact the reporters on this story: Andrea Rothman in Toulouse at aerothman@bloomberg.net; Mathieu Rosemain in Paris at mrosemain@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net