Camera shootout: HTC One vs. iPhone 5



The HTC One's camera in action.



(Credit:
Sarah Tew/CNET)



Our friends at CNET Asia got their very lucky hands on an HTC One for a brief test drive with the device's promising new camera. Indeed, it's worthy test since the shooter is one of One's most interesting features.




Though the One's camera has a 4-megapixel resolution, that's not the whole story by any measure. As Brian Bennett wrote in his First Take earlier this week, the camera features an updated ImageSense system, new ImageChip 2 hardware, and a revamped light sensor. HTC says that UltraPixel Sensor will be able to create more detailed pixels.



Down in Singapore, CNET Asia Editor John Chan took five shots with the One and then compared with the same shots from the iPhone 5. You can see the indoor still life and outdoor portrait comparison below, but click over to CNET Asia to see full story. And after you do, let me know what you think in the comments section below.



CNET Asia's Jacqueline Seng strikes a pose.



(Credit:
John Chan/CNET)



Modeling is hard, especially when your shot is overexposed.



(Credit:
John Chan/CNET)



The HTC One captured more natural colors.



(Credit:
John Chan/CNET)



But the iPhone 5 had a sharper focus.



(Credit:
John Chan/CNET)


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White House to give senators Benghazi documents

WASHINGTON The White House has agreed to give the Senate Intelligence Committee documents related to the attack on a U.S. diplomatic mission in Benghazi, Libya, a congressional aide told The Associated Press Friday.

Republicans had demanded the documents as a condition of voting on the nomination of John Brennan to be CIA director.

The documents include emails between top national security officials showing the debate within the administration over how to describe the attack and other documents the committee had been asking for, the aide said. He spoke on condition of anonymity because he was not authorized to discuss the matter publicly.

The White House has said it has already turned over more than 10,000 pages of Benghazi-related documents, along with witness interviews, staff briefings and hours of testimony.

Tommy Vietor, spokesman for the National Security Council, said the administration was talking with members of Congress about their requests regarding both the Benghazi attacks and the use of drone strikes, but he declined to say whether those requests had been granted.

"That being said, the confirmation process should be about the nominees and their ability to do the jobs they're nominated for," Vietor said.


The attack on the Benghazi compound last Sept. 11 killed U.S. Ambassador Christopher Stevens and three other Americans. The Obama administration sent conflicting signals about whether the assault was a terrorist attack or an incident touched off by protests over an anti-Muslim video.

Republicans accused the administration of an election-year cover-up of an act of terrorism and repeatedly pressed for more information about the attack. An independent review that faulted the State Department and led to four employees being relieved of their duties failed to placate GOP lawmakers. They demanded testimony from former Secretary of State Hillary Rodham Clinton, who spent more than five hours before two congressional panels, and Defense Secretary Leon Panetta and Joint Chiefs of Staff Chairman Gen. Martin Dempsey about the military's response to the attack.

Republicans also pressed the administration for emails, communiques and videos, and threatened to hold up the nominations of members of President Barack Obama's second-term national security team, including the choice of Chuck Hagel for the Pentagon and Brennan for CIA director.

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Pistorius Family: 'Law Must Run Its Course'












South African Olympian Oscar Pistorius is spending time his family today after the athlete was freed on $113,000 bail Friday.


"We realise that the law must run its course, and we would not have it any other way," the Olympian's uncle, Arnold Pistorius said in a statement on Saturday.


The Pistorius family expressed their gratitude that the former Olympian was allowed out of jail before the trial.


"This constitutes a moment of relief under these otherwise very grave circumstances" said Arnold Pistorius."We are extremely thankful that Oscar is now home."


Pistorius, 26, is charged with premeditated murder in the Valentine's Day shooting of his girlfriend Reeva Steenkamp.


While the prosecution argued that the world-renowned athlete was a flight risk and had a history of violence, South African Magistrate Desmond Nair, who presided over the case, disagreed.


FULL COVERAGE: Oscar Pistorius


"He regards South Africa as his permanent place of abode, he has no intention to relocate to any other country" Nair said during his two hour ruling, before concluding with, "the accused has made the case to be released on bail."








'Blade Runner' Murder Charges: Oscar Pistorius Out on Bail Watch Video











Oscar Pistorius Granted Bail in Murder Case Watch Video





Pistoriuis will have to adhere to strict conditions to stay out of jail before the trial. He must give up all his guns, he cannot drink alcohol or return to the home where the shooting occurred, and he must check in with a police department twice a week.


Oscar Pistorius is believed to be staying at an uncle's house as he awaits trial.


RELATED: Oscar Pistorius Case: Key Elements to the Murder Investigation


During the hearing, the prosecution argued that Pistorius shot Steenkamp after an argument, while the defense laid out an alternate version of events saying Pistorius mistook his girlfriend for an intruder.


Nair took issue with the head detective originally in charge of the case, who he said "blundered" in gathering evidence and was removed from the case after it was revealed he is facing attempted murder charges.


RELATED: Oscar Pistorius Case: Lead Det. Hilton Botha to Be Booted From Investigation Team


After the magistrate's decision, cheers erupted in the courtroom from the Pistorius camp. Pistorius' trial is expected to start in six to eight months, with his next pre-trial court date in June.


Reeva Steenkamp Family Reaction


Steenkamp's father, Barry Steenkamp told the South African Beeld newspaper that the 26-year-old athlete will "suffer" if he is lying about accidentally shooting 29-year-old model.


PHOTOS: Oscar Pistorius Charged with Murder


Barry Steenkamp went on to say that the Pistorius will have to "live with his conscience" if he intentionally shot Reeva.


The Associated Press contributed to this report.



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Iran announces uranium finds, days before nuclear talks


DUBAI (Reuters) - Days before resuming talks over its disputed atomic program, Iran said on Saturday it had found significant new deposits of raw uranium and identified sites for 16 more nuclear power stations.


State news agency IRNA quoted a report by the Atomic Energy Organisation of Iran (AEOI) which said the reserves were discovered in northern and southern coastal areas and had trebled the amount outlined in previous estimates.


There was no independent confirmation. With few uranium mines of its own, Western experts had previously thought that Iran might be close to exhausting its supply of raw uranium.


"We have discovered new sources of uranium in the country and we will put them to use in the near future," Fereydoun Abbasi-Davani, head of the AEOI, was quoted as saying at Iran's annual nuclear industry conference.


The timing of the announcement suggested Iran, by talking up its reserves and nuclear ambitions, may hope to strengthen its negotiating hand at talks in Kazakhstan on Tuesday with the United States, Russia, China, Britain, France and Germany.


Diplomats say the six powers, known as the P5+1, are set to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.


The West says Iran's enrichment of uranium to a fissile purity of 20 percent demonstrates its intent to develop a nuclear weapons capability, an allegation the Islamic republic denies.


FROM MINE TO CENTRIFUGE


The enriched uranium required for use in nuclear reactors or weapons is produced in centrifuges that spin uranium hexafluoride gas (UF6) at high speeds. The UF6 is derived from yellow cake, a concentrate from uranium ore discovered in mines.


Iran's reserves of raw uranium now stood at around 4,400 tonnes, taking into account discoveries over the past 18 months, IRNA quoted the report as saying.


In another sign that Iran is intent on pushing forward with its nuclear ambitions, the report also said 16 sites had been identified for the construction of nuclear power stations.


It did not specify the exact locations but said they included coastal areas of the Gulf, Sea of Oman, Khuzestan province and the Caspian Sea.


Iranian authorities have long announced their desire to build more nuclear power plants for electricity production. Only one currently exists, in the southern city of Bushehr, and that has suffered several shutdowns in recent months.


The announcements could further complicate the search for a breakthrough in Kazakhstan, after three unsuccessful rounds of talks between the two sides in 2012.


"We are meeting all of our obligations under the nuclear Non-Proliferation Treaty and we should be able to benefit from our rights. We don't accept more responsibilities and less rights," Saeed Jalili, Iran's chief nuclear negotiator, was quoted as telling Saturday's conference.


In what Washington has called a provocative move, Iran is also installing new-generation centrifuges, capable of producing enriched uranium much faster, at a site in Natanz in the centre of the country.


Western diplomats say the P5+1 will reiterate demands for the suspension of uranium enrichment to a purity of 20 percent, the closure of Iran's Fordow enrichment plant, increased access for International Atomic Energy Agency inspectors and agreement to address concerns on existing uranium stockpiles.


In return, the latest embargoes on gold and metals trading with Iran would be lifted. Iran has criticized the offer and says its rights need to be fully recognized.


"If the P5+1 group wants to start constructive talks with Tehran it needs to present a valid proposal," said Jalili. "It needs to put its past errors to one side ... to win the trust of the Iranian nation."


In a statement issued before the Iranian announcement, German Foreign Minister Guido Westerwelle said the six-power group wanted to enter a 'substantial negotiation process' over Tehran's nuclear program.


"The talks in Almaty are a chance which I hope Iran takes," he said.


(Additional reporting by Alexandra Hudson in Berlin; Editing by Mark Trevelyan)



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Pistorius spends time with family on first day of bail






PRETORIA: South African Paralympic icon and murder suspect Oscar Pistorius on Saturday said he was thankful for prayers offered to his family and that of his slain girlfriend, a day after he was freed on bail.

"Thank-you to every person that has prayed for both families, Osca" read a tweet posted by his brother Carl, in the track star's first public reaction, outside of his court appearances, since his arrest for the Valentine's Day killing of Reeva Steenkamp.

The Olympic "Blade Runner" was spending his first day out on bail with his family pending trial for the killing of his lover.

Pistorius was freed on a record one million rand (US$112,770) bail on Friday after eight days in custody and an emotionally charged four-day bail hearing.

"I would like Oscar to just compose himself and to have a normal day," his uncle Arnold Pistorius told the local Eyewitness News.

He will return to court later this year when a date will be set for trial for having shot dead his model girlfriend and law graduate Reeva Steenkamp on Valentine's Day.

When contacted by AFP, his father Henke Pistorius declined to say how his son had slept at his uncle's house in Pretoria.

But a source close to the family told AFP late Friday that "the family just want time together. They haven't thought about anything except being together".

Pistorius claims he repeatedly shot at and killed his lover by mistake thinking she was a burglar.

Steenkamp's grieving parents, however, did not appear convinced.

"It doesn't matter how rich he is and how good his legal team is. He needs to live with himself if he lets his legal team lie for him," her father Barry told the Afrikaans-language daily Beeld.

Pistorius has assembled some of the best legal brains in South Africa to defend his case.

"He'll have to live with his conscience. But if he's telling the truth, I may forgive him one day," Steenkamp's father said.

But "if it didn't happen as he described it, he should suffer. And he will suffer ... only he knows."

Pistorius's family has sent flowers and a card to the Steenkamp family, but "what does that mean? Nothing," said June, Reeva's mother.

In addition to the bail cash he posted Friday afternoon, which experts say is among one of the highest ever set in South Africa, Pistorius had to surrender his passport and his firearms. The magistrate quadrupled the bail amount that initially had been proposed by the state.

He will have to report twice weekly to Pretoria's Brooklyn police on Mondays and Fridays. He was also ordered not to take alcohol or drugs.

Pistorius may also on Saturday hold talks with his trainer to get back on the track, despite being banned under his bail terms from competing outside South Africa.

"He is a professional athlete. He needs to keep his body in shape," the family source said.

His arrest on February 14 shocked the world and gripped South Africa, where he became a national hero after becoming the first double amputee to compete in the Olympics last year.

The state charged him with the premeditated killing of 29-year-old Steenkamp.

If found guilty, Pistorius faces a possible life sentence.

Just hours before the magistrate's decision to release Pistorius on bail, arguing he was not a flight a risk and did not pose a danger to the public, defence lawyer Barry Roux appeared to concede that the star sprinter could be convicted on a lesser charge of culpable homicide.

That charge, which entails negligence rather than murderous intent, can carry a sentence of up to 15 years in prison.

The prosecution meanwhile said it was confident it had evidence to convict Pistorius.

Winning a bail application "doesn't mean an acquittal", said spokesman for the prosecution Medupe Simasiku, "We still believe we have evidence to convict Oscar Pistorius."

-AFP/fl



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HTC settles with FTC over software security vulnerabilities


Mobile handset maker HTC has agreed to settle a complaint filed against it by the Federal Trade Commission accusing the company of failing to take "reasonable steps" to patch a security flaw in software running on its smartphones.



As part of this settlement, HTC has agreed to patch handsets that were left vulnerable to the security risks. And the company has agreed to develop a security program to address future security issues on its handsets.


HTC has already begun rolling out the patches to devices in the U.S., according to the FTC.


In its complaint, the commission accused HTC of failing to provide its engineering staff with adequate security training. The agency also claimed that HTC had not used "well-known and commonly accepted secure coding practices."



Specifically, the agency pointed to two logging applications offered by third-party companies used in the HTC devices. These applications -- Carrier IQ and HTC Loggers -- are also used by other handset and
tablet makers. And they are used to track users' locations in order to improve the accuracy of location-based services.


Vulnerabilities in these software applications as well as others opened up millions of HTC customers to security risks, such as allowing malicious applications to send text messages, record audio, or even install additional malware on devices, the FTC said.


HTC has said in the past that none of its customers have been affected by these logging issues. And the company issued a patch to its devices starting in 2011. The company has not admitted or denied any wrongdoing as part of the settlement and issued this statement:


Privacy and security are important, and we are committed to improving practices that help safeguard our customers' devices and data. Working with our carrier partners, we have addressed the identified security vulnerabilities on the majority of devices in the U.S. released after December 2010. We're working to roll out the remaining software updates now and recommend customers download them once available.


HTC's devices running
Android 4.0 already include a fix to these security issues.


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Georgia executes man lawyers claimed was mentally ill

JACKSON, Ga. A 38-year-old inmate convicted of killing two college students in 1995 was executed in Georgia on Thursday, apologizing to the families of both victims before being injected at a state prison.

Andrew Allen Cook was pronounced dead at 11:22 p.m., about 14 minutes after he was injected with the sedative pentobarbital. He was the first inmate to be executed since the state changed its procedure in July from a three-drug combination to a single dose.

With his last words, he apologized to the families of Mercer University students Grant Patrick Hendrickson, 22, and Michele Lee Cartagena, 19, who were shot several times as they sat in a car at Lake Juliette, which is about 75 miles south of Atlanta. He said what he did was senseless.

"I'm sorry," Cook said as he was strapped to a gurney. "I'm not going to ask you to forgive me. I can't even do it myself."

He also thanked his family for "their support, for being with me and I'm sorry I took so much from you all."

The Georgia Appeals Court on Wednesday temporarily stayed Cook's execution to consider a challenge to the state's lethal injection procedure. But the Georgia Supreme Court lifted the stay Thursday and all other appeals were exhausted.

Cook's lawyers have argued at various stages in their appeals of his death sentence that he suffered from mental illness and was being treated for depression up to the time of his death.

Mary Hendrickson, the mother of one of the victims, recently told television station WMAZ-TV in Macon she's been waiting 18 years for justice.

"I think that's what it was: the devil's work," she said. "When all that is going on, I was just thinking to myself, 'Well, the devil is not going to win. He's not going to win over my heart. He is not going to win."'

The single-drug injection began at about 11:08 p.m. Cook blinked his eyes a few times, and his eyes soon got heavy. His chest was heaving for about two or three minutes as his eyes closed. Not too long after, two doctors examined him and nodded and Carl Humphrey, warden of the state prison in Jackson, pronounced him dead.

Corrections officials said Thursday evening that Cook had received visits from family earlier in the day and ate the last meal he had requested -- steak, a baked potato, potato wedges, fried shrimp, lemon meringue pie and soda.

A jury sentenced Cook to death after he was convicted in the January 2, 1995 slayings at Lake Juliette. Cook wasn't charged until more than two years later. He confessed to his father, a Macon FBI agent who ended up testifying at his son's trial.

The Georgia Bureau of Investigation reached out to John Cook in December 1995 because they were interested in speaking to his son. When he called his then-22-year-old son to tell him the GBI wanted to talk to him, he had no idea the younger man was considered a suspect.

"I said, 'Andy, the GBI is looking for you concerning the Lake Juliette homicide. Do you know anything about it?"' John Cook testified at his son's trial in March 1998. "He said, 'Daddy, I can't tell you. You're one of them. ... You're a cop."'

Eventually, Andrew Cook told his father that he knew about the slayings, that he was there and that he knew who shot the couple, John Cook recalled.

"I just felt like the world was crashing in on me. But I felt maybe he was there and just saw what happened," he said. "I then asked, 'Did you shoot them?'

"After a pause on the phone, he said, 'Yes."'

As a law enforcement officer, John Cook said he was forced to call his supervisor and contacted the Monroe County sheriff.

At the trial, as he walked away from the stand, the distraught father mouthed "I'm sorry" to the victims' families who were sitting on the front row of the courtroom. Several members of both families acknowledged his apology.

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Oscar Pistorius Granted Bail in Murder Case












Oscar Pistorius was granted bail today in a South African court, meaning he can be released from jail for the six to eight months before his trial for the allegedly premeditated killing of his girlfriend Reeva Steenkamp.


Magistrate Desmond Nair, in reading his lengthy decision, said, "The issue before me is whether this accused, being who is and the assets he has [here], would seek to duck and dive all over the world."
His conclusion:
"I cannot find that he is a flight risk."


Nair said, "The accused has made a case to be released on bail."


PHOTOS: Paralympics Champion Charged in Killing


The judge also said he had to weigh whether Pistorius would be a danger to others. He noted that Pistorius has been accused of using foul language against people in arguments and once threatened to break someone's legs, but he said that was different from someone with an arrest record of violence.


"I appreciate that a person is dead, but I don't think that is enough," he said.


Nair also said he could not be influenced by the public's "shock and outrage" if Pistorius is released.


A member of Pistorius' defense team told ABC News, "he is going to be released today."


Despite the ruling, prosecutors displayed confidence, with one of them emerging from the courthouse today to say, "We still believe we have the evidence to convict Oscar Pistorius."


The court set bail at about $113,000 (1 million rand) and June 4 as the date for Pistorius' next court appearance.


The other bail conditions are: Pistorius cannot leave the country; he must hand over his passports; he cannot return to his home as long as it's an active crime scene; he needs permission to leave the Pretoria area; he must visit a police station on a daily basis and be available to a probation officer at all times via cellphone; he is not allowed any communication with prosecution witnesses; he cannot drink alcohol; and he must relinquish his firearms.


"Do you understand?" the magistrate asked him.


"Yes, sir," Pistorius replied.






Alexander Joe/AFP/Getty Images















'Blade Runner' Shocker: Lead Detective Replaced Watch Video





Speaking for the family, Arnold Pistorius, the Olympian's uncle, said, "Although we are obviously relieved that Oscar has been granted bail, this is still a very sad time for the family of Reeva and for us.


"We are grateful that the Magistrate recognized the validity and strength of our application. As the family, we are convinced that Oscar's version of what happened on that terrible night will prove to be true."


The judge's ruling came on the fourth and final day of the bail hearing for Pistorius, the Olympian accused of murdering his girlfriend on Valentine's Day.


Pistorius, who gained global acclaim for racing at the 2012 London Olympics, shot his model-girlfriend through a closed bathroom. He says he killed Reeva Steenkamp accidentally, but prosecutors alleged that he took a moment to put on his prosthetic legs, indicating that he thought out and planned to kill Steenkamp when he shot her three times through the bathroom door.


Pistorius sobbed today in court. Barry Roux, his defense attorney, said the prosecution misinterpreted the assigning of intent, meaning that the runner's intent to shoot at a supposed intruder in his home cannot be transferred to someone else who was shot -- in this case, Steenkamp.


"He did not want to kill Reeva," Roux told the court.


FULL COVERAGE: Oscar Pistorius Case


When Magistrate Nair, who overheard the bail hearing, asked Roux what the charges should be if Pistorius intended to kill an intruder, the defense attorney responded that he should be charged with culpable homicide.


Culpable homicide is defined in South Africa as "the unlawful negligent killing of a human being."


Roux also made light of the prosecution's argument that Pistorius is a flight risk, saying that every time the double-amputee goes through airport security, it causes a commotion. He said that Pistorius' legs need constant maintenance and he needs medical attention for his stumps.


The prosecution argued today that the onus was on Pistorius to provide his version of events, and his version was improbable.


Prosecutor Gerrie Nel also spoke of Pistorius' fame and his disability, even relating him to Wikipedia founder Julian Assange, who is now confined to Ecuador's London Embassy, where he has been granted political asylum.
"[Assange's] facial features are as well known as Mr. Pistorius' prostheses," Nel said.


Nel argued that Pistorius' prostheses do not set him apart, stating that it's no different to any other feature, and the court cannot be seen to treat people with disabilities accused of a crime, or famous people accused of crime, any differently.


Pistorius has said that in the early hours of Feb. 14 he was closing his balcony doors when he heard a noise from the bathroom. Fearing an intruder, and without his prosthetic legs on, he grabbed a gun from under his bed and fired through the closed bathroom door, he told the court.


But prosecutors say that's implausible, that the gun's holster was found under the side of the bed where Steenkamp slept, and that Pistorius would have seen she wasn't there. Prosecutors also say the angle at which the shots were fired shows Pistorius was already wearing his prosthetics when he fired.






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South African court grants Pistorius bail in murder case


PRETORIA (Reuters) - A South African court granted bail on Friday to Oscar Pistorius, charged with the murder of his girlfriend, after his lawyers argued the "Blade Runner" was too famous to pose a flight risk.


The decision by Magistrate Desmond Nair drew cheers from the athlete's family and supporters, although he appeared unmoved. Pistorius had broken down in tears earlier in the week-long hearing.


The court set bail at 1 million rand ($113,000) and postponed the case until June 4. Pistorius was ordered to hand over firearms and passports, avoid his home and all witnesses in the case, report to a police station twice a week and not to drink alcohol.


The decision followed a week of dramatic testimony about how the athlete shot dead Reeva Steenkamp at his luxury home near Pretoria in the early hours of February 14, Valentine's Day.


Prosecutors said Pistorius, 26, committed premeditated murder when he fired four shots into a locked bathroom door, hitting his girlfriend cowering on the other side. Steenkamp, 29, suffered gunshot wounds to her head, hip and arm.


Pistorius' defense team argued the killing was a tragic mistake, saying the athlete had mistaken Steenkamp for an intruder. They said he was too famous to pose a flight risk and deserved bail to prepare for a case that has drawn worldwide attention.


"He can never go anywhere unnoticed," his lawyer Barry Roux told the court on Friday.


The 26-year-old Olympic and Paralympic star's lower legs were amputated in infancy and he has raced on carbon fiber blades.


The Olympic and Paralympic star faces life in prison if convicted of premeditated murder.


Prosecutors had portrayed him as a cold-blooded killer.


"You cannot put yourself in the deceased's position. It must have been terrifying. It was not one shot. It was four shots," prosecutor Gerrie Nel said on Friday.


SHOTS AND SCREAMS


In an affidavit read out in court, Pistorius said he had been "deeply in love" with Steenkamp, and Roux said his client had no motive for the killing.


Pistorius contends he was acting in self-defense after mistaking Steenkamp for an intruder, and feeling vulnerable because he was unable to attach his prosthetic limbs in time to confront the perceived threat.


He said he grabbed a 9-mm pistol from under his bed and went into the bathroom. He said he fired into the locked door of the toilet, which adjoined the bathroom, in a blind panic in the mistaken belief the intruder was lurking inside.


Witnesses said they heard a gunshots and screams from the athlete's home on an upscale gated community near Pretoria. The community is surrounded by 3-metre-high stone walls and topped with an electric fence.


In a magazine interview a week before her death, published on Friday, Steenkamp, a law graduate and model, spoke about her three-month-old relationship with Pistorius.


"I absolutely adore Oscar. I respect and admire him so much," she told celebrity gossip magazine Heat. "I don't want anything to come in the way of his career."


Police pulled their lead detective off the case on Thursday after it was revealed he himself faces attempted murder charges for shooting at a minibus. He has been replaced by South Africa's top detective.


The arrest of Pistorius last week shocked those who had watched in awe last year as he reached the semi-final of the 400 meters race in the London Olympics.


The impact has been greatest in sports-mad South Africa, where Pistorius was seen as a rare hero who commanded respect from both black and white people, transcending the racial divides that persist 19 years after the end of apartheid.


(Editing by Andrew Roche)



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Air France losses widen as it takes on low-cost carriers






PARIS : Air France-KLM said Friday its net loss deepened by nearly 50 percent last year to 1.2 billion euros (US$1.59 billion) as it began restructuring to cope with the rise of low-cost airlines.

However the airline group said that underlying prospects were improving despite heavy fuel and restructuring costs, with its operating loss narrowing to 300 million euros from 353 million euros in 2011.

This was better than the average figure expected by analysts polled by Bloomberg financial agency of a loss of 334.6 million euros.

In the fourth quarter of last year, the operating loss was reduced to 143 million euros from 202 million euros 12 months earlier.

Sales rose by 5.2 percent in 2012 to 25.6 billion euros.

The load factor, the percentage of seats occupied, rose by 1.2 points to a record 83.1 percent.

Financial director Philippe Calavia said that 2012 was an important year for the group because decisions about the structure and transformation of the company had been taken.

"Today, all of the foundations for an improvement of competitiveness are in place and will produce their full effects in 2013 and 2014," said Calavia.

Air France-KLM has suffered from a fall of competitiveness in recent years, under the pressure of low-cost operators and the rise of airlines in the Middle East and in Asia.

In January of last year, the company announced a vast restructuring plan called "Transform 2015."

It booked provisions of 471 million euros under this plan to cover expenses related to cutting its workforce in order to boost productivity.

Last year some 3,300 out 100,000 staff voluntarily left the airline group and most were not replaced, said AirFrance-KLM.

The plan targets 5,122 voluntary departures this year.

Wages have been frozen and the fleet of aircraft trimmed.

Air France-KLM executives said this led to an improvement in the results on long-haul routes, but that in the medium-haul sector they had yet to turn a corner.

Chief executive Jean-Cyril Spinetta said the operating loss on medium-haul activities deepened from 700 million euros in 2011 to 800 million euros in 2012 due to a worse performance at Air France.

Losses at Air France regional hubs at Marseille, Nice and Toulouse were to blame, and the company has already taken measures to improve their performance.

Air France recently reorganised its three French regional airlines into one company, HOP!, which will begin offering next month flights in France and Europe at prices from 55 euros one way to compete with low-cost airlines.

Air France also boasts another low-cost unit, Transavia France, which under the Transform 2015 plan is also gradually being expanded.

Air France-KLM said that net debt, which weighs heavily on the group, fell by 540 million euros to slightly less than 6.0 billion euros.

The company aims to have cut it by 2 billion euros over 2012-2014.

Air France-KLM executives were cautious about providing any guidance for 2013 given the poor outlook for Europe and market volatility.

The company's shares dove 2.7 percent to 8.10 euros in afternoon trading while the Paris market was up 1.82 percent overall.

- AFP/ch



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