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KLM Royal Dutch Airlines is an international airline operating worldwide. Its home base is Amsterdam Airport Schiphol, one of the most modern airports in the world. KLM forms the core of KLM Group, other members being KLM cityhopper and operator in the leisure market transavia.com. Through close cooperation with European and intercontinental network and route partners, KLM Group offers passengers and airfreight shippers more than 132,000 city-pair connections throughout the world directly or via one or more airports. KLM Group has three core activities: passenger transport, cargo transport and engineering maintenance. KLM Group and its partners serve more than 400 cities in 85 countries on six continents. KLM’s goal is to be a first choice passenger and cargo airline and provider of maintenance services, while consistently enhancing shareholder value. KLM also wishes to offer a stimulating and dynamic working environment for staff, to participate in mutually beneficial relationships with its partners and to maintain a good relationship with its other stakeholders. In the course of fiscal year 2004/2005, KLM has joined forces with Air France and became a member of SkyTeam, a global alliance in which several important European, American and Asian airlines have joined forces (including Air France, Alitalia, CSA, Delta Air Lines and Korean Air). Northwest Airlines, with which KLM has had a strong transatlantic alliance for more than ten years, and Continental Airlines will join SkyTeam at the same time. As a member of SkyTeam, KLM will gain the position it seeks of being a key player in a global alliance that commands an important position in the world’s three major economic areas: America, Europe and Asia. KLM – with its partner Kenya Airways – and Air France, moreover, both have a strong position in Africa. KLM is aware of its influence on people, society and the environment and seeks to balance the Company’s interests with those of the broader society. The high profile of the aviation industry, the involvement of a large number of stakeholders and the political implications of local and global issues make it essential to strike the right balance between the various interests. To KLM, sustainability is a pre-condition for it to retain the support it needs to realize its business objectives
The future of aviation is unthinkable without close cooperation between airlines. The long-standing cooperation between KLM and Northwest Airlines has shown that such an alliance can deliver substantial benefits, in spite of stiff competition and a flagging economy. There are currently three major cooperation alliances in the aviation world. These are One World which includes British Airways, SkyTeam which includes Air France, and StarAlliance which includes Lufthansa. Last year KLM and Air France announced an agreement that would lead to the creation of Europe’s leading airline group. KLM togetter with Northwest Airlines and Continental Airlines have joined the Sky Team alliance since September 2004 in which Air France currently cooperates with Delta Air lines, Alitalia, Korean Air,CSA Tjech Airlines and Aéro Mexico. This fusion resulted in the decision to from a single holding company with two airlines that will each contribute their respective network and partners. KLM and Air France will maintain their excisting core activities - passanger, cargo and engineering & maintenance - and engage in intensive cooperation in these fields. In addition, the two airlines have agreed that they will retain their own national identity and brand. This cooperative venture will enable KLM and Air France to better meet the challenge of other European alliances. The airlines will mutually benefit from each other’s assets, which include their loyal customers, worldwide networks, the hubs Schiphol and Charles de Gaulle, and the potent KLM and Air France brands