KLM has firmed up details of its deal to take a 30%stake in Norway's Braathens SAFE, while also giving an official signature to the ten-year alliance commitment with transatlantic partner Northwest Airlines.
Under the Braathens deal, first announced in August, KLM will pay NKr749 million ($105 million) for a 30%stake in the Norwegian carrier. This will come from the Braathens family share, which is now reduced to 38.8%.
The transaction will be completed towards the end of January 1998, and KLM says that teams are now studying possible areas for co-operation. The airlines have already begun joint work on maintenance within their Boeing 737 fleets.
Braathens and KLM are also understood to be keen to involve Finnair in their Scandinavian co-operation, and the Finnish carrier admits that it is still looking to cement links with one of the major European alliances, despite a series of smaller deals signed since its break with Lufthansa.
The deal between KLM and Northwest, which binds both airlines to ten years of co-operation, has also been signed, resolving the battle over ownership which has marred the five-year partnership. Under the settlement, KLM has agreed to sell back all its 19%holding of Northwest voting shares over the next three years. The first tranche, in September, raised $324 million, with the whole sale expected to raise nearly $1.2 billion. The first stage in expanding co-operation began on 1 October with an Amsterdam-India service.
Source: Flight International
