| Journal: TWUK | Section: |
| Title: | Issue Date: 29/05/00 |
| Author: | Page Number: 6 |
| Copyright: Other |
Alliance
KLM sets sights on BA for global partnership
Report by PAULNORRIS in Amsterdam
KLM has confirmed it is stepping up its search for a new global partner, with British Airways tipped as a strong target.The Dutch carrier’s partnership strategy has been plunged into confusion after the collapse of its two-year alliance with Alitalia.
KLM head of revenue management Europe Peter Bootsma said: “We will continue the search for partners as some of the areas of the world are not covered yet.”
He did not rule out KLM trying to resurrect a partnership with BA. The pair nearly formed an alliance eight years ago but discussions broke down over which would be the major player.
However, Bootsma said comments from KLM president and chief executive Leo van Wijk had signalled a shift in the flag carrier’s position.
There is also a belief that KLM would consider BA taking a small stake in the airline to cement a relationship.
Areas of the world that KLM is not strong in include Australia and South America, two regions that BA and its partners cover well.
A tie-up between KLM and BA would mean the dropping of the Dutch carrier’s alliance with Northwest Airlines or BA’s links with American Airlines.
Analysts say a BA/Northwest agreement would be more likely to be accepted by regulators than the much-delayed plan with American.
BA and KLM both have low-cost airlines with Go and Buzz and an alliance would provide strong competition for Ryanair and EasyJet. Joint use of their Heathrow and Amsterdam Schiphol hubs will also provide stiff competition with Star Alliance at Frankfurt and Air France/Delta Air Lines in Paris. KLM’s alliance with Alitalia will end on August 31. A decision on new partners is expected then.