AMSTELVEEN, October 30, 2002 å—The KLM Group has named buzz as the low-cost airline for the group. As a leisure carrier, Transavia is improving the efficiency of its network operations, product concept, and distribution to serve the leisure market segment.

The decision was taken by the KLM Board based on the results of a study led by Floris J. van Pallandt, who was charged with positioning the KLM Group within the low-cost and leisure markets.

From November 1, 2002, Mr. Van Pallandt will focus exclusively on further developing buzz as an independent low-cost carrier within the KLM Group. Until further notice, from the same date Mr. Tjero R. Zomer will take over his position as CEO and president of Transavia. Mr. Zomer has been a Transavia Board member for the last fifteen years.

buzz: In just under three years, buzz has grown to be the third-largest low-cost carrier in the UK and has taken second place in both France and Germany.

To further consolidate its position in Britain, buzz will open Bournemouth on England’s south coast as a second base after London Stansted. In addition, the airline is researching the possibilities of establishing another UK base as well as one on the European continent.

In 2003, the company will start renewing and expanding its fleet by replacing its BAe 146 aircraft with Boeing 737-300s. Negotiations for the airline’s second phase—once it has replaced the BAe 146s—are still underway.

In years to come, for buzz this will result in the further expansion of the route network and increased frequencies and capacity on its existing routes. Last Sunday, October 27, buzz added services between London Stansted and Amsterdam to its network, which now totals 24 routes in Europe. On November 1, buzz will become an independent enterprise within the KLM Group. The blue KLM uk operation will be combined with KLM cityhopper.

Transavia:

Transavia: Transavia will continue to concentrate on charter and scheduled flights for the leisure market, using Schiphol as its home base. KLM will take over flight operations for a limited number of routes which are of particular importance to KLM’s worldwide route network. Transavia will increase the use of internet and call centers as distribution channels. Additionally on more and more flights the paid service concept will be introduced.

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