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AIR FRANCE KLM announces acquisition of VLM Airlines

24/12/2007

Air France-KLM today announces it has reached an agreement on the terms to acquire VLM Airlines, a subsidiary of the Dutch company Panta Holdings B.V.

VLM Airlines is one of Europe's leading regional carriers catering principally for business travellers. The company operates a fleet of 18 Fokker 50 and one BAE 146 aircraft. London City Airport is the hub for the majority of its flights and therefore VLM Airlines will actively cooperate with the regional carrier CityJet, a 100% subsidiary of Air France, already operating out of London City Airport.

Mr Geoffrey O'Byrne-White, CityJet's Chief Executive, commented: "We see this as a great opportunity to expand and to offer an optimal product to our customers. Both networks are highly complementary and the new combined network will link London City with major European business and financial centers.

Johan Vanneste, Managing Director of VLM Airlines, said: “I’m very excited that VLM Airlines will be part of the Air France–KLM group. The cooperation with CityJet will create value for our customers, as this transaction will ensure them access to the largest number of destinations from London City Airport. The strengths of the Air France–KLM group will provide the necessary support to take the development of VLM Airlines to the next level.”

The financial details of the transaction are not disclosed.

Further information

Naomi Dulfer, Press & PR Manager, Air France UK

ndulfer@airfrance.fr

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