In a message dated 9/30/2003 2:04:35 PM Pacific Daylight Time, gfoley@xxxxxxxxxxxxxxx writes: << It has been stated that what is agreed is a holding company to own the two airlines. The airlines will give the appearance of independence. Air France will try to look French, and KLM will try to look Dutch and royal. On the other hand, everyone expects that they will not compete, but cooperate in service. That Dutch and Royal thing is funny. I doubt they will compete much, but I don't think it will be a situation like AA-TWA where one disappears. I think they will probably act much like KL and NW did with their agreement and use their cooperation to serve more destinations. KL would have never flown into MEM if not for the NW deal and I doubt NW would fly as many flights into AMS. If the "merger" is supposed to save money, it is hard to see how either airline can guarantee employment to any particular segment of their present staff. >> According to AF, getting rid of staff is not part of their economic plans. I think that means that any French company that tries to mess with its staff does it at huge risk of a strike. Since this will be a company based in Paris, the risk-reward scenario of laying off too many people, especially after this kind of a merger does not really allow too much in the way of layoffs. Also, these airlines do need staff to keep up their respectively large networks. I think the biggest cuts would come in management, as that is where the most synergies will occur