NYTimes.com Article: KLM Seeks to Join Rivals' Alliances

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KLM Seeks to Join Rivals' Alliances

March 24, 2003
By BLOOMBERG NEWS






LONDON, March 23 - KLM Royal Dutch Airlines said today that
it did not plan to merge with British Airways, Europe's
biggest airline, but that it was in talks with British
Airways and Air France to join one of their alliances.

"We are talking to both airlines, but not about merging,"
said a spokesman, Bart Koster. KLM is seeking to join
either the SkyTeam alliance of Air France or the Oneworld
grouping led by British Airways, he said. KLM has the
industry's oldest revenue-sharing partnership with
Northwest Airlines.

British Airways officials were not immediately available to
comment.

British Airways and KLM considered plans to merge in 2000,
abandoning talks because the deal would not have produced
the needed savings, the companies then said.

Since the merger talks failed, British Airways shares have
dropped almost 60 percent, valuing the company at £1.35
billion ($2.1 billion), while KLM shares have shed 75
percent, valuing the airline at 308 million euros ($324
million).

http://www.nytimes.com/2003/03/24/business/24KLM.html?ex=1049518297&ei=1&en=b30c97ddbf9e10bc



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