France Hits Out at Dutch in Feud Over Air France-KLM Holdings

  • Spat erupted in February when Netherlands acquired stake
  • State agency says carrier must have normal capital structure

A logo sits on a wing tip of a passenger aircraft operated by KLM, the Dutch arm of Air France-KLM Group, at Munich airport in Munich, Germany.

Photographer: Michaela Handrek-Rehle/Bloomberg
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The Netherlands has created an imbalance in the governance of Air France-KLM, a French government representative said, signaling a power struggle between the carrier’s two biggest shareholders remains unresolved.

The Dutch government needs to treat the airline like a normal listed company and choose between holding a stake in the group or in the KLM unit, Martin Vial, head of the French State Shareholdings Agency, said in a briefing Friday.