ALITALIA: The arbitration tribunal deciding the legal dispute between KLM and Alitalia, concerning the termination of their Alliance Agreements on 28 April 2000, has issued its pronouncement concluding that KLM”s termination of the agreement was not valid. The arbitrators have granted Alitalia”s claim for damages to the sum of E250m (plus interest) and at the same time agreed KLM”s argument that Alitalia should repay E100m (plus interest) paid to the Italian state airport as a contribution to development costs for Malpensa Airport, near Milan. The net outcome is KLM pays Alitalia E150m. In November 1999 the two airlines announced a worldwide passenger joint venture. By April 2000 KLM had called it a day. The engagement had lasted barely six months. Alitalia is now firmly into bed with the Air France/Delta Skyteam alliance, whilst the future of KLM”s relationship with other European carriers remains unclear.
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