KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) and partner Air France (AF, Paris CDG) will announce their plans concerning the future of cargo subsidiary, Martinair (Netherlands) (MP, Amsterdam Schiphol), on July 25. Industry publication, the Loadstar, says the Franco-Dutch carrier has appointed Goldman Sachs to oversee the sale which could include its fleet of B747-400(F)s and MD-11(F)s, its Air Operators Certificate and personnel.

As a deal sweetener, KLM will likely pledge not to operate freighters out of Amsterdam Schiphol.

While a decision was scheduled to have been made earlier in the year, complexities associated with the sale have rendered the process far more tricky than previously anticipated.

Among the more delicate details are the futures of 600 staff currently employed at Martinair and whose unions have called for "structured dialogue" about the proposed sale. In addition, the structure of the company is also presenting management with headaches given that Martinair consists not only of a cargo airline, but also of a Regional Jet Centre (RJC) (catering to Fokker Aircraft (Woensdrecht) and Embraer (EMB, São José dos Campos Professor Urbano Ernesto Stumpf) MRO requirements) and a flight academy.

"The RJC was formed last year, after the majority of Martinair’s previous maintenance abilities were transferred to KLM Engineering & Maintenance. RJC’s key customer is now KLM cityhopper (WA, Amsterdam Schiphol). Sources in Amsterdam suggested that RJC would become an independent company after any sale, but there have been question marks over whether KLM would continue to outsource its Embraer maintenance, or bring it in-house, thus depriving RJC of its top customer," the report said.

Dutch media reports claim talks have thus far been held with Etihad Airways (EY, Abu Dhabi International) among others though it is uncertain as to how the Emirati carrier will approach any possible buy-in in light of European investment laws that cap foreign ownership at 49%.

Despite the restriction, Loadstar speculates that Martinair could "propel" Etihad Cargo's fleet and network given its strong position in the South American and East African markets.