Alitalia Joins Northwest/Klm
Partnership; Airlines Seek Anti-Trust
Immunity

NEW YORK - (May 10, 1999) - Northwest Airlines, Alitalia Italian
Airlines and KLM Royal Dutch Airlines announced today that Alitalia
will join the Northwest/KLM trans-Atlantic joint venture. The three
airlines made the announcement at the signing of a Commercial
Cooperation & Integration Agreement and an Alliance Coordination
Agreement held at the Rainbow Room in New York.

"These agreements are very good news for travelers," said Doug
Steenland, Northwest executive vice president. "The Northwest/KLM
joint venture has produced more air service and lower air fares. We
look forward to extending those benefits to the areas served by our new
partner."

"KLM and Northwest have developed the most far-reaching and
progressive aviation joint venture in the world," said A.B. van Luyk,
KLM executive vice president - passenger division. "We have worked
hard to stay at the forefront of this innovative development and the
results have been extremely positive for our companies and our
customers. Since 1992 we have increased the number of trans-Atlantic
flights we operate by 87 percent. We are delighted that Alitalia will be
joining us in continuing this record of growth and improving service."

"We believe the Northwest/KLM joint venture is the most advanced
form of aviation commercial cooperation in the world," said Mario
Rosso, Alitalia executive vice president - strategies and alliances. "We
are delighted to be joining this venture."

As part of their agreement, Northwest, KLM and Alitalia are making a
joint application to the U.S. Department of Transportation for immunity
from the U.S. antitrust laws. The request is similar to the
Northwest/KLM application approved by the DOT in 1993 and will
allow Alitalia, KLM and Northwest to coordinate their trans-Atlantic
route networks, enhance the efficiency of their respective operations
and facilitate their ability to provide seamless service to the public.

Subject to governmental approval, the three airlines will pursue
opportunities in the following areas:

Codesharing.
Integration of the airlines' frequent flyer programs.
Reciprocal airport lounge access.
Seamless service for connecting passengers.
Coordination of schedules at U.S. and Italian hubs and gateways.
Route and schedule planning and coordination throughout their
global route networks.
Pricing and inventory management.
Establishment and management of marketing, advertising, sales
and distribution networks, staffs, programs, policies and systems
such as the creation of joint sales office and the development of
joint bids for corporate and government contracts.
Integration, design and development of information systems
including inventory management, yield management, reservations,
ticketing, distribution and other operational systems.
Creation and implementation of cooperative cargo services,
including development of cargo products and coordinated use of
cargo facilities and terminals.
Sharing of facilities and services at airports served by one or
more alliance members.
Procurement of goods and services, including station and ground
handling services, general goods and services, field and station
supplies, catering, crew uniforms, information technology
products and services, fuel and maintenance.

The carriers expect to implement their agreements upon approval of
their request for anti-trust immunity by the U.S. Department of
Transportation.

BSL - It looks like NJDavid beat you to the punch on posting of this article. Please see this thread for related 'Wings" discussions:

http://www.flyertalk.com/forum/Forum1/HTML/001138.html