DUTCH FLAG CARRIER KLM is to increase its holdings in Martinair Holland and Air UK.

KLM will take its holding in Martinair from 33.82% to 50% at the same time as the other major shareholder, Nedlloyd, increases its stake from 49.19% to a full 50%.

The shares are being acquired from Dutch financiers ICO and Securitas, which are divesting their respective interests of 8.09% and 8.9%.

KLM is also increasing its share in Air UK's parent Air UK Holdings, from 14.9% to 45%, in a move, which adds £13 million to the group's equity base.

The UK airline carried 2.6 million passengers in 1994 - 700,000 of them between London Stansted and Amsterdam. More than 40% of Air UK passengers from its ten UK origins to Amsterdam transfer to KLM services at Schiphol Airport.

Source: Flight International