The French government is to reduce its 54.4 per cent stake in Air France as part of its programme of privatising partially and fully owned companies to raise cash.
The finance ministry says the move is the first step toward the new centre-right government's privatisation programme, which could involve 13 companies.
It said the move will allow Air France to accelerate its fleet modernisation and consolidate alliances.
The ministry has not specified the size of the stake it will sell in the carrier, although it says the government will remain one of its major shareholders.
But union resistance to privatisation is likely to be a key concern for the government as it proceeds with the sale of state assets. The ministry says it will quickly begin discussions with Air France staff to "fully reflect their interests".
Air France says the government share sale will allow it to face increasingly tough international competition "in the best conditions".
PA