December 20, 2013 / 5:41 PM / 6 years ago

Air France-KLM to sell CityJet to Germany's Intro Aviation

PARIS (Reuters) - Air France-KLM (AIRF.PA) said on Friday it had received a firm offer from Germany’s Intro Aviation GmbH to purchase its CityJet regional airline as well as its subsidiary VLM.

Financial terms for the deal were not disclosed. Air France-KLM said in a statement it expected the transaction to close in the first quarter of 2014.

Reuters had reported on the talks in July.

Intro Aviation, founded in 1973 and based near Nuremberg, acquired German airline Deutsche BA from British Airways - now part of IAG (ICAG.L) - for one euro in 2003, according to the company’s website.

The airline was renamed DBA and then sold to Air Berlin, Germany’s No. 2 airline, in 2006. The same year, Intro Aviation took a majority stake in Germany’s LTU group before selling the rehabilitated carrier to Air Berlin in 2007.

Dublin-based CityJet, the No. 1 carrier at London City Airport, has a fleet of 38 aircraft and offers more than 480 weekly flights across Europe, according to its website.

Shares in Air France-KLM closed up 0.87 percent at 7.302 euros on Friday, valuing the company around 2.19 billion euros.

Reporting by Natalie Huet; editing by Mark John

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