BA and KLM End Talks

British Airways PLC
21 September 2000

BRITISH AIRWAYS AND KLM END TALKS

British Airways and KLM today announced that they will
not be proceeding any further in their talks on a
possible combination of their businesses.

Rod Eddington, Chief Executive of British Airways, and
Leo van Wijk, Chief Executive of KLM, said: 'We have
emphasised throughout that there was no assurance that
our discussions would lead to a deal.

'We always recognised that this would be a complex
transaction, involving not only commercial and economic
issues, but also aeropolitical, regulatory and other
matters. Although we made considerable progress, it has
not been possible to resolve these.

'Although relations between the two parties remain
amicable, we have had to decide to draw a line under
these negotiations.'

Rod Eddington added: 'In the meantime, we will continue
to take steps to improve the performance of our
company, through our fleet and network strategy,
through continued product improvement and by working
with our established alliance and franchise partners.'

Lord Marshall, British Airways' Chairman, said:
'British Airways still believes there must be
consolidation in the European airline industry.  Europe
is our backyard.  We have always been a leading player
in this market, and we will continue to look for
opportunities to strengthen our position in it.'

Leo van Wijk, Chief Executive of KLM, said: 'During the
discussions with British Airways, KLM has successfully
continued to focus on the development and the
profitability of the company.  While we continue to
believe that consolidation in the European aviation
industry is inevitable, we at the same time remain
convinced that for the foreseeable future, KLM has
bright prospects on its own. We are well positioned in
Europe, are financially strong, and have a profitable
and growing business. Together with Northwest Airlines,
we have one of the most developed transatlantic
alliances.'