French state owned carrier Air France said yesterday that it was in talks with at least four major US airlines about a possible transatlantic alliance and hoped to have an agreement by the end of the year.

A spokeswoman said talks were most advanced with American Airlines, United Airlines, Delta Air Lines and Continental Airlines.

Air France, which hopes to be privatised in late 1997 or early 1998, is also exploring areas of cooperation with Asian carriers, she said.

The most likely potential partner of the four airlines named by Air France was Continental, industry analysts said.