KLM Statement on Alitalia Arbitration

The Supervisory Board and Board of Managing Directors of KLM today discussed the outcome of the arbitration between KLM and Alitalia, as released on Wednesday, December 4, 2002.

The Supervisory Board has obtained advice on the tribunal’s award and has reviewed the financial implications thereof. The Supervisory Board is disappointed about the outcome of arbitration but reiterates that the decision in April 2000 to terminate the Alliance Agreements with Alitalia was based on the right business considerations.

The KLM Supervisory Board sees no reason to attach consequences to the outcome of the arbitration and has unanimously expressed its confidence in the KLM Board of Managing Directors.