Delta, Air France KLM and Alitalia to Reduce Trans-Atlantic Capacity in Fall 2011

Joint Venture enables coordinated response to high fuel prices, seasonal demand

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May 19, 2011, 05:00 ET

ATLANTA, PARIS and ROME, May 19, 2011 /PRNewswire/ -- The members of the leading trans-Atlantic joint venture – Delta Air Lines (NYSE: DAL), Air France KLM (OTC: AFLYY) and Alitalia – today announced a year-over-year 7 to 9 percent reduction in trans-Atlantic passenger capacity this fall between Europe and the United States and Canada, as the airlines respond to a significant increase in jet fuel prices and fluctuating seasonal demand.

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"Our alliance allows us to make strategic decisions about our network and operate as a single airline on trans-Atlantic flights," said Bruno Matheu, executive vice president – Marketing, Revenue Management and Network for Air France KLM. "Combining our efforts, we are able to leverage the benefits of the joint venture to respond to economic and external cost pressures."

The four member airlines will adjust their combined network and decrease capacity by reducing frequency on selected routes during the fall and winter seasons and right-sizing the joint venture fleet across the Atlantic while introducing seasonal flying to warm weather destinations.

"With the most established joint venture across the Atlantic, we are in a unique position to collaborate with our JV partners to make full use of our combined fleet and networks to generate healthy returns and consistently serve our customers," said Perry Cantarutti, Delta's senior vice president – Europe, Middle East and Africa.

Since its inception, the joint venture has made significant progress in building a leading trans-Atlantic alliance. Its achievements include the introduction of more than 5,000 joint sales contracts for trade and corporate partners across Europe and the U.S., and the formation of joint pricing and revenue management units, which strengthen its competitive position on the trans-Atlantic. The alliance also has consolidated reservation sales responsibilities in Europe and the U.S., co-located commercial and operating teams and airport facilities, unified signage in more than 400 airports and combined marketing and advertising.

About the Joint Venture:

With more than 260 daily trans-Atlantic flights and a fleet of 144 aircraft, the joint venture between Air France KLM, Alitalia and Delta Air Lines provides customers with the benefits of a vast route network offering more frequencies, competitive fares and harmonized services on all trans-Atlantic flights. The JV network is structured around seven main hubs: Amsterdam, Atlanta, Detroit, Minneapolis, New York-JFK, Paris-CDG and Rome Fiumicino, together with Cincinnati, Lyon, Milan, Memphis and Salt Lake City. The JV offers customers access to 300 destinations beyond the 26 North American gateways and 200 destinations beyond the 33 European gateways throughout Europe, Asia and Latin America. The JV represents 27 percent of total trans-Atlantic capacity and generates $11 billion in annual revenues. Under the terms of this agreement, the partners jointly operate their trans-Atlantic routes, thereby sharing revenues and costs. More information on Air France KLM, Alitalia and Delta is available at their respective corporate websites.