AIR FRANCE, DELTA TO FORM GLOBAL ALLIANCE

   Air France and Delta Air Lines have formed an alliance the two carriers
say is the first step toward creating a global alliance with other airlines
by year end.
   A new alliance anchored by Air France and Delta will compete with
alliances already in place, such as the Star Alliance, oneworld and an
alliance founded by KLM Royal Dutch Airlines, Alitalia and Northwest
Airlines.
   Delta and Air France officials at a media briefing in New York said
their agreement includes cargo and that the two airlines will work to merge
freight operations while they integrate passenger services.
   Air France said it chose Delta over its other U.S. partner Continental
Airlines because Delta has a stronger presence in the eastern U.S., with
hubs in Atlanta, New York and Cincinnati, Ohio, and because Delta’s and Air France’s route networks do not overlap.
   Air France said it will begin to unwind its relationship with
Continental in the coming months. Continental has partnered with Northwest
Airlines and is expected to join the alliance between Northwest, KLM and
Alitalia.