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* Stock falls almost 10% as Air France confirms bid
* Offer could safeguard most jobs -sources
* French government pressure a concern -trader
(Updates with offer details, minister's comment)
By Laurence Frost
PARIS, Sept 9 (Reuters) - Air France-KLM shares
fell sharply on Monday as it emerged as a bidder for bankrupt
French-based budget carrier Aigle Azur, which left 19,000
passengers stranded when it abruptly halted operations.
The offer from the group's Air France unit was among 14 bids
submitted for privately-held Aigle Azur, which was placed was
placed under bankruptcy protection on Sept. 2., ahead of a
midday deadline, an official with the CFDT union told Reuters.
Higher fuel costs and stiffer low-cost competition have led
to a wave of bankruptcies among smaller European airlines in
recent years, including Air Berlin, Germania, British-based
Monarch, Latvia's Primera Air and Swiss SkyWork.
An Air France spokeswoman confirmed that it had tabled a
bid, declining to give details or further comment.
Air France is seeking to acquire Aigle Azur's valuable
take-off and landing slots at Paris Orly airport and expand
services on its main routes to Algeria and Lebanon, sources with
knowledge of the offer told Reuters.
The proposal would also see the French airline hire about
70% of the defunct carrier's flight crews and cabin staff
through a selection process open to all employees, they said.
Air France-KLM shares tumbled after a French government
official identified it as a likely buyer, and closed 9.8% lower
as details of the offer appeared in media reports.
French junior transport minister Jean-Baptiste Djebbari told
Le Parisien newspaper said Aigle Azur needs a "serious buyer who
can guarantee a maximum of jobs".
Aigle Azur, whose biggest shareholders are China's HNA Group
and Brazilian entrepreneur David Neeleman, has suffered in the
wake of a botched expansion from profitable medium-haul services
focused on Algeria into long-haul destinations such as Brazil.
Other bids came from Air Caraibes owner Dubreuil Group and
low-cost carriers Vueling and Easyjet, whose letters of intent
stopped short of detailed bids, the CFDT official said. Easyjet
confirmed it had expressed formal interest.
The French state had publicly flagged the Air France bid and
Dubreuil's interest in the long-haul business - which could
together save about 90% of its 1,200 jobs.
A third bid considered "serious" came from an investor group
led by Lionel Guerin, former head of Air France's Hop! unit.
Government influence over Air France-KLM, in which France
holds a 14.3% stake, added to investor concern about the offer,
with one trader telling Reuters the state was "likely to push
them to get involved".
Officials first turned to Air France-KLM after Aigle Azur
sought government help in April, according to financial daily
Les Echos, and the group's interest was piqued after rival
Vueling discussed buying Orly slots from the struggling carrier.
Air France has scrambled extra Algeria flights to help
repatriate the 13,000 Aigle Azur passengers still stranded by
the collapse. Most will have reached their destinations by the
end of the week, the junior transport minister said.
(Reporting by Patrick Vignal and Laurence Frost; Writing by
Richard Lough and Laurence Frost; Editing by Louise
Heavens/Susan Fenton/Alexander Smith)
