KLM May Form Pact With Northwest, Continental Via AP

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KLM May Form Pact With Northwest, Continental Via AP

KLM Royal Dutch Airlines NV extended its codesharing agreement Monday with Continental Airlines Inc. and said the U.S. airline could become part of a three-way Atlantic venture with partner Northwest Airlines Inc.

The move comes as airlines scramble to cooperate, via short-term alliances, in a bid to cut costs and boost revenue in the wake of the Sept. 11 terror attacks on the United States - which saw passenger volumes tumble and forced operators to cut capacity.