Air France, Europe's third-largest carrier, has unveiled a plan to form a strategic alliance with US number three, Delta, marrying the potential of two major transatlantic traffic hubs.
The link-up should benefit CityJet, the Irish-based airline, which last month announced an £8 million (€10.16 million) refinancing deal which will include Air France loaning the airline £2 million in return for 25 per cent of the company.
CityJet currently operates 56 flights a week between Dublin and Paris under an Air France franchise.
The widely flagged alliance between Delta and Air France, which should be up and running by the end of the year and will be exclusive for 10 years, has lagged behind many tie-ups in the fiercely competitive aviation sector.
It will give both carriers access to each other's chief sources of passengers, and Air France chairman Mr Jean-Cyril Spinetta told a news conference the link was the first step towards including other partners to build a global network.
International links boost airline revenues by letting partners reach more cities and put passengers on each other's planes without buying new aircraft.
Delta's hub in Atlanta, Georgia, is the world's largest, while Air France has strong growth potential in Charles de Gaulle Airport.
Charles de Gaulle is the 10th busiest airport in the world and used by about 35 million passengers a year.
Delta flies to more European cities than any US airline, but its international ties have faltered as rivals like United Airlines and American Airlines gained ground.
The French carrier, which, in its 1998-99 financial year, reported profits down 11 per cent at €259 million, chose Delta over Continental Airlines, the US number five.
In Europe, the Air France/Delta tie-up will pit the pair against alliances of airlines already reaping the cost-benefits of partnerships Star Alliance and OneWorld.
The Aer Lingus board has recommended that it should negotiate to join the OneWorld alliance.
Consultants are studying the recommendation and will report to the Minister for Public Enterprise, Ms O'Rourke.
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