KLM Ground Services Ltd (KGS) and Air France Services Ltd (AFSL) have announced that they will be merging on 1 April 2009 to form the company Cobalt Ground Solution Ltd, which will reportedly be the largest ground handling operator at London Heathrow Airport’s Terminal 4 and London City Airport.

Air France has a 40% stake in the new company while KLM has a 60% stake. The company is the first full merger between two Air France-KLM Group subsidiaries.

Cobalt Ground Solutions Ltd will also have a position at Heathrow’s Terminal 2, as it prepares airlines customer moves to the newly refurbished Terminal 4, which is currently planned for October or November of this year. The company will reportedly have an operating turnover of GBP36m and has a current client portfolio of 26 international and domestic airlines.

The company will offer the most extensive services possible under licence by any ground handling operator at both Heathrow and London City airports, including passenger check-in, concierge, ticketing, ramp handling, de-icing and aircraft towing.

Under the merger, Cobalt will be investing funds in upgrading its Information Communications Technology and accommodation, used to facilitate services for its airline customers. Cobalt staff will receive new or upgraded accommodation and airline customers will benefit from new central airside accommodation for crew briefings, access to airline systems in all operational areas and the use of computer based training rooms.

source: www.tradingmarkets.com