If necessary KLM is prepared to jettison its long-running transatlantic alliance with Northwest Airlines when it decides later this year whether to join the global ‘oneworld’ or rival SkyTeam grouping of airlines, a spokesman for the Dutch carrier said on Friday.
“KLM wants to keep its succesful alliance with Northwest,” spokesman Jan Christiaan Hellendoorn said. “But if it is in the best interest of both parties, the contract includes the terms under which the link can be ended,” he added.
Hellendoorn was commenting on reported remarks made by Chief Executive Leo van Wijk in an interview with British-based monthly magazine Airline Business, saying that KLM could seek a divorce from NWA.
Before the end of the year KLM aims to take a decision on joining either the ‘oneworld’ alliance led by British Airways Plc or the SkyTeam grouping led by Air France and Delta Air Lines. In turn Delta has its own domestic U.S. alliance with Northwest and Continental Airlines. KLM officials say talks with Air France are currently more intensive than those with BA, with whom it has previously held merger talks, but not necessarily more advanced.
The SkyTeam also includes Alitalia (Milan:AZPIa.MI – News) with whom KLM had a brief alliance before a costly divorce a few years ago.But the KLM/Northwest alliance dates back to 1989 and is the longest running of all major transatlantic airline alliances.
Under the name of Wings, the KLM/NWA link was meant to form the nucleus of a wider KLM-led alliance of airlines.KLM once had a 20 percent stake in Northwest but now only holds a small residual equity stake in its Minneapolis-based partner.
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I don’t believe they would. Although from an operations point of view I think Oneworld is better for them, I doubt KLM would sacrifice such a strategic partner in Northwest.
By: Saab 2000 - 3rd August 2003 at 17:08
Originally posted by Florida Dude
Northwest is going to want to be apart of a Global Alliance, just being with Delta and Continental ain’t gonna cut it, they need broad prospective and i’m pretty sure that being able to stay with KLM and also be apart of an even bigger picture is more in their interest.
Fine, that is a legitimate argument. However, it is conditional on which airline you accept to be the driving force in the alliance. Northwest does not need KLM, their relationship doesn’t necessarily have to be with KLM in the end. If they were to join SkyTeam alone then it would be able to enhance a new relationship with Air France and also with their fruitful US partners so KLM’s importance as a partner is over-estimated. On the contrary, KLM would be out on their own with only limited co-operation with American, therefore, who relies on whom more heavily? In effect it would seem as if Northwest were calling the shots in this alliance and whether KLM chooses to follow them is their call but it is assert that Northwest doesn’t have to follow KLM’s example.
By: Hand87_5 - 3rd August 2003 at 14:40
Maybe Bobus intead 🙂
By: Ren Frew - 3rd August 2003 at 14:21
How many alliances will there be before the world only has one airline ? (lol):D
I imagine the manufacturers will be next, cue the Airbing line of products ! :rolleyes:
By: Florida Dude - 3rd August 2003 at 12:45
Northwest is going to want to be apart of a Global Alliance, just being with Delta and Continental ain’t gonna cut it, they need broad prospective and i’m pretty sure that being able to stay with KLM and also be apart of an even bigger picture is more in their interest.
By: Saab 2000 - 3rd August 2003 at 11:52
NWA is linked up to Continental and with Delta who is already in Skyteam, why would they try with American?
By: KabirT - 3rd August 2003 at 11:42
so you are suggesting a NW and AA merger?:confused:
By: Florida Dude - 3rd August 2003 at 09:48
Maybe Northwest and AA could “tie the knot” and also join the the Oneworld Alliance with KLM.:cool:
By: Saab 2000 - 3rd August 2003 at 09:46
Yes, as I have said I cannot see a break up from Northwest occurring, as it would be too damaging to KLM to lose such an intensive partner. No one would give KLM such an enveloped alliance as Northwest currently does and so they are highly dependent on them. If they went into Oneworld they would have to forge a partnership with American, but this would only be limited with a huge loss of capacity. If you like, KLM needs Northwest more than Northwest needs KLM and so to head towards SkyTeam would guarantee that their relationship continues.
KLM wants a European partner and I think that from an operations point of view it would be a better fit in to Oneworld with not just Trans-Atlantic operations and European but also worldwide operations, although certain issues over power in my opinion keeps them separate. Firstly, KLM regards itself as a major European airline and so is quite demanding when it comes to alliances. If they joined Oneworld they would always be in the shadow of British Airways and American, not the position they would like considering what they possibly could get out of an alliance with Air France and SkyTeam in terms of being a major player. British Airways also would not like to see its lucrative Trans-Atlantic market going to Amsterdam. While in the long term it would seem a good deal to see transfer passengers going to Amsterdam due to constraints at Heathrow, in the short term British Airways would lose out to Amsterdam which has expansion capabilities. You only have to look at Aer Lingus, Iberia or Finnair to see they operate niches with no threat to Heathrow, KLM is a different story being too close to Heathrow. In the end it would be in British Airways’ best interests to see KLM head towards SkyTeam as Air France would not give up expansion at CDG for Amsterdam, therefore weakening KLM.
By: KabirT - 3rd August 2003 at 06:30
Yes…i think there alliance with Northwest is priceless and is offering them a great foot in the American market.
By: steve rowell - 3rd August 2003 at 03:19
I totally agree
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August 2, 2003 at 7:12 pm