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Wed, Jun 20, 2007

News From Paris: Air France-KLM Group Orders Boeing 777, 737 Planes

Combined Value Of $2.7 Billion List

Aero-News learned Wednesday the Air France-KLM Group has placed orders with Boeing for nine 777-300ERs and seven 737-700s. At a combined value of $2.7 billion at list prices, these orders mark the first time the combined airline group, consisting of Paris-based Air France and Amsterdam-based KLM Royal Dutch Airlines, has announced an airplane acquisition at the group level.

KLM will operate the 737-700s, using them to replace the airline's current Classic series 737s and to expand its European short-haul operations. KLM will align the specification and operation of the Boeing 737-700 closely with its affiliate airline, transavia.com.

KLM holds options for another seven 737-700s.

"KLM is enhancing its competitive position in Europe by making the Boeing 737 Next-Generation the backbone of our short-haul fleet," said Peter Hartman, president and chief executive officer of KLM. "The 737-800 and 737-900 have proven to be highly efficient and reliable. We look forward to incorporating its sister, the 737-700, into our fleet."

Air France will add the 777-300ERs to its existing fleet of 46 777s. Wednesday's announcement brings Air France's unfilled orders for the 777-300ER to 14, plus options for another seven 777-300ERs.

"These additional Boeing 777s are another important measure in our continued drive to simplify our fleet through maximum commonality," said Pierre-Henri Gourgeon, chief operating officer of Air France.

Jointly, the Air France-KLM Group operates 196 Boeing airplanes, including 123 widebodies.

"It is truly a privilege to again be chosen by two of Europe's most respected airlines, Air France and KLM, as they look to consolidate while also expanding their operations. The 777 and 737 will deliver the efficiency, environmental and economic performance that Air France and KLM demand for profitable growth and excellent service," said Scott Carson, president and chief executive officer of Boeing Commercial Airplanes. "We remain committed to the continued success of the Air France-KLM Group and we thank the Group for its continued confidence in Boeing products."

FMI: www.boeing.com, www.airfrance.com, www.klm.com

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