KLM Royal Dutch Airlines And Malev Sign A Framework Agreement On Enhanced Cooperation

Malév and KLM Royal Dutch Airlines signed a framework agreement on enhanced cooperation. This was done today in Budapest in the presence of Mrs. Annemarie Jorritsma, Dutch Minister of Economic Affairs, and dr. István Stumpf, Hungarian Minister of Prime Ministers Office. This agreement allows both airlines to expand the existing codeshare cooperation on flights between their Budapest and Amsterdam hubs to destinations beyond those hubs. Furthermore, Malév and KLM will link their loyalty programs, will share their marketing and sales activities in selected markets and will pursue synergies in a number of other areas. This agreement also enables Malév to enter into a cooperation with Northwest Airlines in the near future. The main intent of parties in intensifying the cooperation is to strengthen their own market positions and results. It is the first and most important step for Malév to become a more integrated player in the global airline business.

Málev and KLM initiated their partnership in December 2000, when they signed a code-share agreement on the Budapest - Amsterdam route. They jointly operate four daily return services between both hubs. This beneficial and fruitful partnership was one of the reasons why both airlines decided to further develop and broaden their relationship.

Implementation of the framework agreement will begin immediately and will become visible to passengers in the first half of 2002.

“This enhanced agreement assures KLM of a strong strategic position in Central and Eastern Europe and gives us access to many new markets”, said KLM’s Executive Vice-President Passenger Division Henny Essenberg. ?Furthermore it is an important impulse for the further development of Amsterdam Airport Schiphol as KLM’s hub and one of Europe’s most important mainports.”

“The KLM-Malév co-operation will provide us with the accessibility of a well developed European and global network, and will strengthen our passenger appeal in Hungary, Europe and North America It will also help us drive the implementation of our restructuring program and contribute to Malév’s future development as a strong-hold in Central-Eastern Europe.” said József Váradi, Chief Executive Officer of Malév.