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SKYTEAM TARGETS DISTRIBUTION EXPENSES


PRAGUE, February 24, 2006 - The SkyTeam Alliance has begun a project to achieve better efficiencies through both direct and indirect distribution channels for its nine member airlines. Specifically, the alliance partner airlines are meeting with the new distribution technology providers, and cooperating on Web and portal development strategies.

SkyTeam is the global airline alliance partnering Aeromxico, Air France, Alitalia, Continental Airlines, Czech Airlines, Delta Air Lines, KLM Royal Dutch Airlines, Korean Air and Northwest Airlines.

SkyTeam invited the new distribution providers to present at a recent distribution meeting in Prague. The airlines are also reviewing methods to reduce unproductive booking expense through the existing distribution systems. SkyTeam member airlines with a combined distribution spend of $1.2 billion per year estimate that up to 15 percent of external distribution expense is generated from unproductive booking activity.

Representatives of the SkyTeam airlines have coordinated efforts to produce a best practices guide for travel agencies using the global distribution systems (GDS).

"There are many ways to accomplish reduced distribution costs and gain greater efficiencies, including the adoption of new distribution models and making existing processes more cost-effective" said Giorgio Callegari, a member of SkyTeam's Steering Committee and corporate vice president alliances & business development at Alitalia.

The investigation of potential new distribution models is part of SkyTeam's overall aim to seek synergies and achieve greater efficiencies across its member airlines.

About SkyTeam

SkyTeam is the global airline alliance partnering nine members, including Aeromxico, Air France, Alitalia, Continental Airlines, CSA Czech Airlines, Delta Air Lines, KLM Royal Dutch Airlines, Korean Air and Northwest Airlines. Through one of the world's most extensive hub networks, SkyTeam offers its 343.6 million annual passengers a worldwide system of more than 15,000 daily flights covering all major destinations. In 2005, readers of Global Traveler Magazine voted SkyTeam "Best Airline Alliance."
Please visit SkyTeam on the Web at www.skyteam.com.


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