KLM AND ALITALIA IN JOINT VENTURES.

The Dutch and Italian flag carriers KLM Royal Dutch Airlines and Alitalia said their alliance will be in two stages culminating in the formation of passenger and cargo joint ventures in the course of 1999. The ventures, in which the Dutch and Italian carriers will be equal partners, will be based on the hubs of Amsterdam, Rome and Milan, but the deal may hinge on the complete privatisation of Alitalia by June 30, 2000. Alitalia and KLM said they had identified two main goals - enhancing their position on intercontinental routes and freight services and developing a partnership allowing them to meet the competitive challenges of the airline industry. The two...