Air France, a unit of Air France-KLM revealed that it is still in discussions with Delta Air Lines Inc about the possibility of making a joint venture, following a statement in the newspaper Les Echos, which stated that an agreement would be signed shortly between the two air carriers.

A spokesman for the carrier said that the airline is still in talks with Delta and nothing is finalized at the moment.

The newspaper Les Echos said that a deal could be finalised in autumn. It also said that the anticipated joint venture would permit both airlines to go along their ongoing partnership and add a fifty-fifty split of profits on the main trans-Atlantic routes operated by the carriers.

According to the report, the initial stage would take effect in April 2008 and add services between Paris and JFK airport New York along with services from Heathrow airport London to various US cities.

The second stage which will start in 2010, which would cover the rest of the trans-Atlantic flights of both the companies.

In April, Delta came out from bankruptcy protection and nineteen months of re-organisation, promising to be a fierce competitor in a tough market. The alliance between these two companies could be a real challenge for other airlines along the same routes and regions. However, it still needs to be decided that whether Air France would sign the deal or not.