AEROPORTS de Paris, the state-controlled owner of the Charles de Gaulle and Orly airports, and the Dutch government-owned operator of Amsterdam airport will exchange equity stakes of 8 percent and increase cooperation to help Air France-KLM Group win more customers.

ADP will buy part of NV Luchthaven Schiphol through a reserved capital increase, an investment of 370 million euros (US$491 million), and Schiphol Group will buy a matching percentage of ADP from the French state for 67 euros a share, an investment of 530 million euros, ADP Chief Executive Officer Pierre Graff said yesterday on a conference call.

"The alliance makes strategic sense and will allow better coordination of flights through a dual hub system," Credit Suisse analysts Robert Crimes and Ur-cheng Leong said yesterday in a report.

"Air France and KLM should be able to serve destinations more effectively, especially for transfer passengers." The two airports are already the bases of Air France and KLM, which merged in 2004 to become Europe's biggest airline even as they operate as separate carriers.

Air France-KLM Group and partners in the Skyteam alliance face competition from European airlines and carriers in the Mideast that want travelers to use their hubs for flights to Asia or the Americas, Bloomberg News said.

"This alliance will strengthen the attractiveness of both airports," Graff said. "By working together we can extend our catchment area, and thanks to this we can capture more passengers and attract new airlines."

Airports and airlines in the Middle East have been increasing services and competing with European carriers by seeking passengers flying between the United States or Europe and Asia.