The European Court of Justice (ECJ) has ruled that aspects of the controversial passenger name record (PNR) deal between the EU and the US to be illegal.
Under the 2004 agreement, European airlines must provide the US Department of Homeland Security with a host of personal details of their passengers flying to America.
But the ECJ ruled that the way the deal had been agreed was "not founded on a legal basis."
It said the agreement could remain in place until September 30 by which time the EU and the US should hammer out a new agreement.
The PNR system was set up to prevent terrorists entering the US. But the European Parliament, which brought the issue to the ECJ, was concerned that it infringed EC rules on data and human rights.
Among the details the Americans wished to know were where passengers were staying in the US and credit card details. The information had to be sent before take off under the Advanced Passengers Information System.
Airline which failed to comply faced both a fine from the US authorities and having their plane turned back.
The ruling has placed airlines in an award position and Ulrich Schulte-Strathaus, secretary general of the Association of European Airlines, called on the EC and other parties to work together to draw up a new agreement if one were to be needed.
KLM to expand co-operation in China
KLM is to expand its co-operation with two Chinese carriers, Air Sichuan and China Southern.
The agreements between the Dutch flagship carrier and the two Far Eastern airlines include new routes and increased frequencies.
The agreement with Air Sichuan, a regional carrier, offer KLM passengers code share agreement for connecting flights from Chengdu to Beijing, Chongging, Kunming and Xian.
There will also be two new non-stop flights between Chengdu and Amsterdam.
The deal with China Southern offer KLM passengers code-share flights from Beijing and Chengdu to six Chinese cities: Jinan, Nanning, Urumqi, Xining, Yanji and a further destination that has yet to be determined.
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