A global airline giant was born on Tuesday with French national carrier -- Air France taking over Dutch KLM to create the world's biggest carrier in terms of sales in a restructuring, which also privatised the new entity Air France-KLM.

According to media reports, Air France-KLM boasts sales of almost euro 19.2 billion or $ 23 billion.

Air France and KLM said that 89.22 per cent of KLM shareholders had accepted the takeover offer, tendering their shares in a swap estimated to be worth about euor 800 million ($950 million).

Shareholders will to receive 11 Air France shares and 10 Air France warrants for every 10 ordinary KLM shares exchanged.

A final figure is due on Wednesday when all the financial instruments involved will be quoted on the Amsterdam, Paris and New York stock exchanges.

The deal reduces the French government's stake in Air France to 44.7 per cent from 54 per cent.