KLM IMPROVES FLYING DUTCHMAN PROGRAM

Between December 2000 and March 2001 KLM will introduce a number of significant improvements to its Flying Dutchman frequent flyer program. The improvements will simplify procedures, provide better service, and will make it easier for members to earn and burn awards with the Flying Dutchman Program.

The improvements follow on extensive research into relevant frequent flyer requirements and the overall performance of the Flying Dutchman Program. The study enabled various areas of improvement to be defined, leading to the following short term measures:

1. Non expiry of points

Flying Dutchman points earned by BlueWing and SilverWing members will no longer expire, as long as members fly at least once in a three year period. Currently points expire after 2 to 3 years.

2. Reduction of flight award booking time

Booking time of flight awards will be reduced to 2 days prior to departure. Currently Flying Dutchman members must book their flight awards 14 days prior to departure.

3. Online registration of missing flights

Momentarily, Flying Dutchman members must send in their boarding pass and a copy of their ticket if flight registrations are missing on their point’s statement. Through a special section on the Flying Dutchman Internet site (CyberWing) members can simply register their missing flights online on certain airlines.

4. Online award calendar

KLM will upgrade its award booking facilities on the Flying Dutchman Internet site (CyberWing). In contrast to the current award booking screen which only shows seat availability on single flights, the improved award booking screen will display a complete overview of all flights and their award seat availability three days before and three days after the preferred travel date.

5. Extended opening hours Flying Dutchman Helpdesk

The opening hours of the Flying Dutchman Helpdesk will be extended. The new times are: 8.00 to 20.00 hours Dutch time from Monday to Saturday. This greatly improves the worldwide availability of the helpdesk and enables further improvement of call center performance, which has already significantly improved over the last couple of months. Current opening hours are from 8.30/9.00 hours – 17.30 hours, from Monday to Friday.

6. Dedicated helpdesk for RoyalWing members

Dedicated telephone lines and call agents will be introduced for RoyalWing members, enabling them to experience the shortest possible waiting times and the best possible service.

7. Special promotions

Flying Dutchman members will be offered discounts and/or double points on specific flights through targeted e-mails and direct marketing actions.

8. More possibilities to earn and burn points on commercial partners (non-airline)

Through a more focused approach, KLM will further strengthen its relationship with existing commercial partners. New partners for the Flying Dutchman Program will also be attracted - mainly in the area of financial and personal services - thus increasing opportunities for Flying Dutchman members to earn and burn points.

Next to the above improvements, KLM will also offer potential Flying Dutchman members the possibility to enroll on line through internet as of October 2000. The improvements are part of a long term strategy to improve the Flying Dutchman Program and reflect KLM’s commitment to continue to invest in and improve its product.

The Flying Dutchman Program has 1.5 million members in Europe, Africa, South America & India. North America, Canada and Asia are covered by Northwest’s WorldPerks program. The Flying Dutchman Program cooperates with 23 airline partners and 17 non-airline partners in the following segments: hotels, car rental, financial services and various other services such as the Schiphol tax free shopping center. Recent additions are Omnipoint mobile phone services and FD Wine Cellar (for Dutch FD members).