KLM is to spend part of its growing cash mountain on acquiring the remainder of shares in Dutch charter and cargo carrier Martinair. The flag carrier also says that it is considering other share deals, including buying back the 25% stake still held in the airline by the Dutch Government.
Martinair, which was jointly owned with the Royal Nedlloyd transport company, will now become a wholly owned KLM subsidiary. The charter airline will retain an independent identity and operation within the group.
KLM is considering a series of deals in an attempt to reduce some of its cash holding, which stood at over DFl2.8 billion ($1.3 billion) in December, including the inflow of cash from Northwest Airlines as it accelerates the buy-back of its Dutch partner's stake.
Cashflow from operations is also booming as KLM heads for a record financial year to the end of March. At the nine month stage, the group net profit stood at DFl1.1 billion on the back of soaring traffic and yields. The group is due to book another $600 million from Northwest.
KLM has already acquired full control of Air UK and a 30%stake in Norway's Braathens SAFE.
Source: Flight International
