KLM ROYAL DUTCH AIRLINES WINTER SCHEDULE

Capacity cuts and extending cooperation

KLM Royal Dutch Airlines will launch its winter schedule on October 28, 2001, with 15 percent fewer available seat kilometers than before September 11, responding to the current airline industry crisis. However KLM will be operating higher frequencies on some high-yield routes despite this reduced capacity.

KLM will increase the frequency of its weekly roundtrip service between Amsterdam and Johannesburg from seven to ten flights. Roundtrip service between Amsterdam and Nigerian capital Lagos will increase to daily frequency with the addition of a seventh flight.

Effective December 1, KLM and Continental Airlines are launching codeshare service on KLM’s European route network and on Continental’s U.S. domestic network.

Continental Airlines flights to Amsterdam will connect to flights operated by KLM and its regional partners to 55 European cities. KLM flights to Continental’s hubs at Houston, Texas, and Newark, New Jersey, will connect to Continental flights operated to a total of 111 U.S. domestic destinations.

On October 28, KLM and China Southern will launch their codeshare partnership on all their flights operated between the Netherlands and China, with reciprocal loyalty program benefits. Consequently KLM will offer travelers a total of five flights a week between Amsterdam and Beijing, two of them operated by China Southern. In addition, KLM will expand its Shanghai service from two to three roundtrips weekly.

KLM’s partnership with Northwest Airlines on routes to and from India will gain in efficiency, as KLM will operate daily roundtrip service to Delhi, and Northwest daily roundtrip service to Mumbai, both from Amsterdam.

KLM and Malaysia Airlines will further shape their successful partnership with network and product alignments, and by expanding their codesharing and reciprocal loyalty program linkage this winter. KLM and Malev will also phase in further expansion of their partnership during the coming months.

Alliance partners KLM and Kenya Airways will cooperate closely to trim capacity on routes operated by Kenya Airways in Africa, in response to market developments.

Two cities will no longer be served nonstop, Malmo in Sweden and Atlanta in the U.S. This winter, KLM will be offering Atlanta service via Northwest and Continental hubs offering frequent codeshare service to and from Atlanta connecting to the many daily trans-Atlantic flights operated by KLM, Northwest and Continental to these hubs.

The opening of the new bridge connecting Denmark and Sweden over the Oresund strait provides Malmo in South Sweden with fast road and rail connections with Copenhagen’s Kastrup Airport, making KLM’s Malmo service redundant.

KLM will reduce its own capacity by operating smaller aircraft or by cutting frequencies, enabling the airline to maintain its global route network unimpaired.

KLM will, for example, operate MD-11 equipment on its daily roundtrip service between Amsterdam and Toronto, replacing Boeing 747-300 aircraft. Similarly, on the roundtrip service to Montreal, KLM will replace MD-11 aircraft with Boeing 767 equipment.

Some routes have experienced falling passenger traffic while on these routes demand for air cargo capacity remains at previous levels. To meet this shift in demand, Boeing 747 full-passenger aircraft may be replaced by 747 combi equipment on these routes.

The cuts in frequencies will among other affect weekend services between Amsterdam and European cities.

This winter, KLM cityhopper will replace Eurowings entirely on the Amsterdam - Cologne route, and partially on the Stuttgart route. KLM’s regional subsidiary already took over operation of the Amsterdam - Bremen route from Eurowings last summer.

KLM uk and KLM exel will follow KLM’s lead in cutting capacity this winter. KLM exel already suspended its Maastricht - Milan service on October 15.