AEROMEDIA
The Italian Aerospace Information Web
by Aeromedia - corso Giambone 46/18 - 10135 Torino (Italy)


KLM Quits Joint-Venture with Alitalia

On 28 April, Dutch airline KLM, exercising the clauses of the agreement signed November 1999, ceased its alliance with Alitalia, aimed to create a larger joint-venture with other airlines like Northwest and Air Europa.
Two strictly interconnected reasons forced KLM to decide the bail-out. The Milan/Malpensa airport struggles to reach the planned traffic targets and the privatization of Alitalia is still not close.
Notwithstanding the efforts of three successive Italian governments, Alitalia and SEA (the public company managing the Milan area airports), Malpensa 2000 operation appears to be a failure. Market forces as customer appeal and legitimate interest of almost all the Italian and foreign carriers clashed with the concept of a unique hub in Northern Italy. Problems arose also from the noise level on the surrounding communities and from the poor road connections to areas other than Milan.
Consequently the financial recovery plan of Alitalia, heavily based on the hypothetical success of Malpensa 2000, is still far from fulfillment.
The KLM decision to cease the agreement with Alitalia, looking for partners elsewhere, is a resounding blow to the air transport policy in Italy.

In the picture: Milan/Malpensa airport at sunset.

(Aeromedia, May 2000)