Air Transport World

KLM. (News Briefs: Europe Report).(invalid termination of Alliance)(Brief Article)

KLM's termination of its alliance agreement with Alitalia in April 2000 was not valid, a Dutch arbitration tribunal ruled. It ordered KLM to pay Alitalia [euro]252 million ($257 million) plus interest. Simultaneously, the tribunal granted KLM's claim that Aliralia should repay the [euro]100 million, plus interest, that KLM paid it in Dec. 1999 as a contribution to development costs for Milan Malpensa Airport. KLM said it was "surprised and disappointed" at the ruling, which will have "a significant negative effect" on 2002 financial results. …

Log in to your account to read this article – and millions more.