KLM And UTC Expand Joint Venture Negotiations

KLM Royal Dutch Airlines and United Technologies Corporation today announced that their negotiations to form a nose to tail aircraft maintenance joint venture are progressing well and have expanded in scope.
Earlier this year, the two companies announced a memorandum of understanding that sought a phased approach of forming a maintenance network that would first include engines and then airframe components and finally airframes. The parties are now negotiating based upon an acceleration of the process to accomplish all phases in one transaction. KLM and UTC plan to include all of KLM`s Schiphol based engineering & maintenance operations supported by selected Pratt & Whitney and Hamilton Sundstrand operations around the world. The venture will be able to conduct unified marketing of its capabilities at its inception, with the ultimate objective to create an integrated global maintenance network.

Completion of the joint venture will be subject to negotiations and execution of definitive agreements and receipt of regulatory approvals. Finalization of the terms is not expected until the first quarter of 2001, with operations to commence after regulatory approvals are received.

KLM is already one of the world`s prominent providers of total care maintenance solutions

United Technologies Corp. provides a broad range of high technology products and support services to the building systems and aerospace industries.