Klm May Sell Its Stake In Northwest

KLM Royal Dutch Airlines has proposed selling its 20 percent stake in Northwest Airlines.

In January 1993, KLM and Northwest became the first European and U.S. airlines to win antitrust immunity from the U.S. government, allowing them to unite their fares, flight schedules, marketing and to make joint purchases of supplies.

The partnership is worth $150 million a year in added revenue and cost savings to KLM and an estimated $50 million annually to Northwest. But from the beginning, the two airlines clashed over control issues.

KLM spokeswoman Marjory Wenting said Thursday that talks between the companies involve two main issues: The possible sale of the Dutch carrier’s share in Northwest, worth about $769 million, and a multiyear contract to govern the operational alliance that has allowed the two airlines to provide service as one.

No deal has been reached and neither airline is commenting on how they would structure the sale.

“At this point, it’s a KLM proposal,” Northwest spokesman Doug Killian said. “We’ve had negotiations and the two (chief financial officers) are talking, but that’s all we’re saying at this time.”