| Journal: TWUK | Section: |
| Title: | Issue Date: 15/05/00 |
| Author: | Page Number: 4 |
| Copyright: Other |
KLM ends its UK sales deal with Alitalia
KLMis to end its UK sales agreements with Alitalia on June 1 as their alliance has collapsed.Existing joint contracts with agents will remain in place until both carriers have demerged.
KLMUK sales director Peter Cornwall said: “Over time, KLMUK envisages that it will manage a smooth transition from the current representation to a stand-alone Alitalia sales team.
“At the moment, all agreements which are currently in place with agents will continue.”
Alitalia described KLM’s decision to end the partnership as “illegitimate” and the explanations as “unconvincing”.
KLM said it broke off the two-year partnership because of continuing problems at Milan Malpensa airport and delays in the privatisation of Alitalia. It is claiming reimbursement of the £57m which it invested in Milan’s Malpensa airport as part of the alliance.
KLM’s break-up of the Joint Venture partnership with Alitalia again shows the fragility of alliances. Recently, Canadian Airlines left Oneworld to join Star Alliance, Air France teamed up with Delta Air Lines and dropped agreements with Continental Airlines and the Austrian Airlines Group left Qualiflyer for Star Alliance.