The management boards of KLM Royal Dutch Airlines and Alitalia have
approved the alliance agreement signed by the two airlines last year.
The KLM-Alitalia alliance will officially begin in November. The two
airlines will create a joint management team to oversee both the passenger
and cargo operations of both airlines. The two carriers will make joint
fleet decisions and joint investments in new aircraft.
The two carriers have agreed to split profit and incur investment costs
equally. KLM will also give Alitalia Euro 100 million to invest in
developing a hub at Malpensa airport outside Milan.
KLM and Alitalia have already merged their freighter operations
worldwide and are offering joint time-definite cargo services under the
name Select.
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