accorhotels has issued interest in buying part of air france klm.s reportedly considering a sale of all or parts of its 14.3% stake in the national carrier. air france klm has been struggling to stay profitable in the face of long—running labour strikes and rising competition. to t to he international air transport —— the international air transport association plans to revise down its profit forecasts this year because of rising oil, infrastructure and labour costs. but those aren't the only issues facing the airline industry. the bbc‘s aaron heslehurst is attending iata's three—day annual conference in australia. g'day from my hometown. i am here to analyse an industry which 4 billion of us use last year, and it is going up. i am here to take a look at the global airline business. why sydney? it is this year's host city of the iata general meeting, the only time of the year that you get 480 airline bosses under one roof. will airlines go electric? and what will we, the passenger, have to pay for? and here is a problem. where are the women? why are

a former french businessmen and the former ceo and chairman of air france klm.u. four quick questions. long haulflights seem to be on the rise. has demonstrated its ability to transfer passengers on long haul distances successfully, so people pay less to travel more and travel longer. it is a new trend in the industry and it will continue. everything is going electric nowadays. electric planes. are we going to see them?” electric nowadays. electric planes. are we going to see them? i think it is too early. the electric technologies for aeroplanes have been very carefully studied by our manufacturers, but it is a long—term solution. and airlines are always trying to make a profit, of course, which means passengers are paying more and more for things. what is next? you are travelling for a much lower price than you are travelling ten yea rs lower price than you are travelling ten years ago, so we have made an enormous effort to reduce our fares so you can travel everywhere for cheaper prices. and let's talk about one problem facing your industry and many industrie

we have had very strategic investments and investing in air france klm we have made our moves and keeping the momentum positive. we have been more on the offensive in 2016, 2017 compared to the years before. i think it's important for us to keep this offensive approach. >> shares of lufthansa trading lower even though the company says they plan to have record summers. we'll come to that despites positive outlook it still expects profit we don't have to come to it another time, it expects profits this year due to, funny enough, the rising price of oil and costs associated with its expanding euro i would add it's not on my radar, the fact that radar costs in the airline industry, still as well especially with the pilot's union being so proactive. bayer has launched an action to take over monsanto monsanto managed to lose some of its debt u.s. regulators approved the deal last week they claimed that bayer would close the deal on june 7th >>> elsewhere, cybg has under the offer for virgin money they would own around 38% of the combined entity. the owner and yorkshire bank has until 1800 pst t

we will keep an eye on air france klm and bt.g markets the european open is up next. don't forget we are traveling to work to get the bloomberg radio live on your mobile device in the london area. this is bloomberg. ♪ good morning. welcome. you are watching "bloomberg markets." we are live from our european headquarters in london. i am guy alongside matt in frankfurt today. >> guy, i am here for goldman sachs, 22nd financial conference. cash trade is less than 30 minutes away. ♪ >> does six plus one equal dribble? as trueu

it's 46,000 jobs at air france klm. people are going on holiday. a whole national airline carrier going bust is a bad look and could end up with a big crisis for the government we'll let business do business but at the same time there are real repercussions. >> klm, one of the big blue chip names there. >>> elsewhere, some corporate news premiere foods is facing calls to remove the ce they said it had, quote, completely lost faith in him and would like to see them recruit a permanent chief executive from outside the country. they plan to vote against darby's re-election at the annual meeting in july. >>> elsewhere, brittain's biggest real estate agent countrywide has opened sharply lower after cutting the half year guidance. the firm says it's committed to rebuilding its sales pipeline which was significantly below last year's levels >>> and thewealth management unit of financial services group old mutual has listed under 9.6% of the shares were priced at 2.76 pounds with the valuation they offer financial advice, planning and investment services t

and will afi, klm, e and m cooperate, for example? >> well, today we own 49% of virgin atlantic. we acquired it about five years ago, and we're partners with richard branson on that venture, and the virgin atlantic/delta partnership is going great. ten years ago, when you think about delta, in some perspective, delta did not even fly to london's heathrow airport. we were not a to there were bilateral restrictions against access into that market. and once open skies, you know, opened the market to us, it became very expensive to get access to it. heathrow to get access to heathrow, the going market race is inxcs of 50 million pounds for just the right to have one slot into that market, to take off and land once a day. so it was cost-prohibitive to gain access, and so, how we gained access was by investing in virgin. and together now, this summer, we'll operate 35 flights a day across the transatlantic, delta andirgincombined, wre ten ago, delta operated none. so, that'- you get a c to see the power of the partnership, not just from a growth perspective, but certainly from our cust

cari is looking at the air france klm numbers, strike affected. and we are joined on b.p.ame, last start off with sab. >> this is how they start back in may. may was a month to forget. the tsb owned by sabadel, the spanish bank, the u.k. said it had lost confidence in the c.e.o. of t.s.b. after they had a series of fraud attacks. they had a new platform, which aused a lot of customers to be unable to access their money. whether they take any action is in question. but it adds a layer of uncertainty for a spanish back coming out of a tumultuous period. >> klm did all right, but air france didn't. air france affected by strikes, and that is really showing up in these numbers? >> that is right. we had four days of strikes in may for air france. so air france trance importanted 1.7% less passengers compared to last year when klm passenger numbers actually grew by 2.7%. but what could weigh on the stock price today is not necessarily the traffic numbers, but the prospects of an extended strike at air fans over the summer. unions are meeting later today. they are not satisfied w

will afi, klm, e and m cooperate with ultratech operations -- delta tech operations? ed: the virgin atlantic delta partnership is going great. delta did not even fly to london heathrow's airport. there were restrictions against access into the market. once the skies opened the market to us, it became very expensive to get -- those guys open to the market to us, it became very expensive to get access. it was cost prohibitive to gain access. we gained access by investing. in the summer, we will operate 35 hubs a day, transatlantic and virgin combined, where is five years ago, delta operated -- whereas five years ago, delta operated none. the next step is to link what we have with airfrance and klm. we want to create a single jv. that is so european partners can operate as one, to create the seamless service for customers and make the investments in technology for the customer experience. those joint ventures in the future will be operating as one, primarily for the benefit of our customers. andrea: you mentioned china. the growth in routes to and from china, business re

air france klm shares are higher.atellitet launched a for a long time customer, marking its 11th mission of the year. the falcon nine rocket carried it from florida. the company is targeting roughly 30 missis in total this year. that is your bloomberg business flash. francine: thank you, taylor. european stocks higher with s&p futures this morning after jobs data boosted optimism. ratingser-than-expected suggest that america's labor market will keep powering growth and reinforce market expectations for a fed hike later this month. still with us, andrew sheets and dnaanae. thank you for sticking around. andrew, when you look at u.s. growth, is it ok? we were talking about the danger of the u.s. overheating. andrew: growth in the second quarter looks very strong. economists at how tracking estimates, it is over 3%. the current elements of growth are not the issue. the question is, does that decelerate? there's concern over how much fiscal stimulus is in the system now. our view is that growth in the u.s. will start to d

accor hotels says it's looking to buy part of air france klm.ling a sale of its 14.3% stake in the national carrier. the airline has been hit by strikes and is struggling to stay profitable. walkouts have cost the airline around 400 million euros so far. there are reports that italy's largest bank, unicredit, could be looking to merge with france's societe generale. the ft says there's been no formal approach, but the italian lender is trying to become a cross—border european bank. both banks are trading higher this morning. the owner of clydesdale and yorkshire banks — also known as cybg — is sweetening its takeover bid for virgin money, with an all—share offer valuing the lender at $2.3 billion. a deal between the two firms would create the uk's sixth—largest bank. so many stories out there today, it's hard to cover them all. and the technology just isn't working! it's hard to cover them all. and the technologyjust isn't working! so i can't show you! we will come back to this later. it's the largest civil fine in australian corporate history.

the next step is to link what we have with airfrance and klm. jv.ant to create a single that is so european partners can to create the, seamless service for customers and make the investments in technology for the customer experience. those joint ventures in the future will be operating as one, primarily for the benefit of our customers. andrea: you mentioned china. the growth in routes to and from china, business relations between the u.s. and china are key areas of growth, your advanta-shanghai route -- atlanta-shanghai route restarts next month. what are your views on the tariff debate in washington, particularly as it relates to china, and how else could those tariffs impact delta? tariffs impacted is positively, seeing the administration speak out. us positively, seeing the administration speak out. i am not a tariff expert. trade wars and a terrace in general are not good for business. in general are not good for business. there are legitimate concerns that ought to be addressed. betweenpect to travel china and the u.s., it is growing in d

we have established temporary bus zones for klm buses in various neighborhoods in the city. ly note that that has not gone without some complaits because of the sudden appearance of red zones. we did not do the level of outreach for that one. something that has been part of the plan all along and part of the outreach but now getting some attention is the express service will not operating during this two month period. we don't have enough operators and buses to provide the service for the tunnel as well as continue to run that annex. we will have extra service on the end judah. we've been really stepping outreach to make sure that no annex customers are caught unawares. we will have -- we've been f looding through every channel with people with information with signage all aspects now with the program to make sure that everybody knows what's happening, what to expect on monday and we'll have lots of folks out and about on monday and ongoing to make sure multiple languages that people have all the information they need about how to get around and what the impacts are. [captio

considering increasing or purchasing a minority stake in air france/klm. 5.25 now gaining about percent. said that it is add an early stage. it comes on a day where the international air transport profittion had a forecast of 12%. airlines are having a tough time. air france and especially. be bailingaccor may it out. the former director of the u.s. national intelligence council, james klapper, will be joining us at 5:30 p.m. on u.k. television, globally at 5:30 p.m. u.k. time. this is one of the many interviews you will want to tune into. this is bloomberg. ♪ francine: president trump is set for a clash with american allies the e.u., canada, and china threatened to retaliate. the final hurdle. italy's populist governor prepares for a populist vote in parliament. george soros warns the country could be on a course for fresh elections. safety in numbers. as rumors swirl about banking mergers, we ask, should regulators be favorable?