Topic Author
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Joined: Tue Oct 29, 2002 8:01 pm

KLM Stops Talks With BA

Thu Aug 28, 2003 4:28 am

KLM announced this night that they (temporarily) stopped talking with BA about a possible cooperation. According a spokesman they said that they know what they want to know from/about BA.
Furthermore the talks with Air France are continued but are not exclusive according this spokesman."We can sit with BA any time again".

Looks like it goes more and more into the direction of Air France/Skyteam, but they want to have AF as a private partner and not government owned.

Any comments from UK members here?

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Joined: Sat Apr 19, 2003 12:28 am

RE: KLM Stops Talks With BA

Thu Aug 28, 2003 4:40 am

No raised eyebrows here.

DTM (a UK member)
Posts: 216
Joined: Thu Jun 05, 2003 10:15 am

RE: KLM Stops Talks With BA

Thu Aug 28, 2003 5:54 am

This is another example of the poster not being accurate.

KLM announced that they finished talking to BA and that the final deal is on the table. Before they say Yes or No, they want to have reached the same point in the negotiations with AF, so they can compare both deals.

"KLM Stops Talks With BA" sounds like there is not going to be a future deal between the two.

Actually, a deal between KL and BA became much more likely today, since there is already a final proposal on the table. Talks with Air France are taking much longer, and that could be a bad sign, especially since KLM added that the French government ownership of AF is causing all the delays. KLM has bas experience with governments getting involved (AZ)...
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Joined: Fri Aug 27, 1999 3:50 am

RE: KLM Stops Talks With BA

Thu Aug 28, 2003 6:07 am

Thanks Floris! Phew!! We at BA want KLM in the family!! Fingers crossed  Smile
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Joined: Sat Jul 05, 2003 11:24 pm

RE: KLM Stops Talks With BA

Thu Aug 28, 2003 8:20 am

Actually Floris kinda sounds like they are leaning toward AF personally....

(Amsterdam- News), Europe's No. 4 airline, is currently not talking with British Airways about forming an alliance after discussions on joining Air France's SkyTeam have intensified, a KLM spokesman said on Wednesday.

Dutch KLM has said the talks with the French flag carrier were more advanced, but this is the first time KLM said it was not holding parallel discussions with BA.

"We have held talks with BA on and off for many years and we know each other's points of view very well. We took stock and decided that we would focus on talking to Air France," the spokesman, Bart Koster, said.

Earlier on Wednesday Air France also said discussions with KLM had moved to a more advanced stage.

Koster declined to say when KLM last talked to the UK airline but insisted that discussions about joining BA's oneworld alliance could resume at any time. In the past decade KLM and BA made several unsuccessful merger attempts.

The KLM spokesman would not say what caused the deadlock in the discussions with BA. KLM Chief Executive Leo van Wijk had said BA was still keen on taking over its smaller rival.

Most analysts predict that KLM will join SkyTeam because its long-term U.S. partner, Northwest, is closely working with Delta , a SkyTeam member. Joining that alliance is expected to be KLM's first step towards an eventual takeover by Air France to create Europe's largest airline.

But the Dutch carrier and Air France still have to settle several outstanding issues, including the French carrier's unfinished privatisation, KLM spokesman said.

"Air France is still majority state-owned. We want to have more information about privatisation before we commit," Koster said.

The French government is expected to decrease its majority stake in Air France is the coming months, most likely through a secondary issue. Last week a French newspaper suggested that France could swap a part of its holding for control of KLM.

Another hot issue that has complicated talks with Air France, as well as with BA, is KLM's desire to maintain its Dutch identity and solidify the role of Amsterdam's Schiphol airport as a major European hub.

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Joined: Wed Aug 11, 1999 3:47 am

RE: KLM Stops Talks With BA

Thu Aug 28, 2003 8:26 am


How do you get that? It seems much more likely that the AF tie-up will happen, though nothing is a done deal.

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