Air France and Delta Air Lines Forge Global Alliance.

ATLANTA--(BUSINESS WIRE)--June 22, 1999--

Today Air France and Delta Air Lines have signed an exclusive long-term strategic agreement that lays the foundations for a major global alliance, to be announced by the end of the year.

This alliance will be set up with other airlines from among Air France's and Delta Air Lines' existing partners and other carriers interested in this project.

As Delta Chairman Leo F. Mullin stated, "The Air France-Delta Alliance is a victory for global airline customers and for the two carriers' employees and shareholders. Our customers will benefit first from the agreement as two of the world's premier airlines will be working together to guarantee them new standards of excellence throughout the world."

In forming the global alliance, Air France and Delta intend to work together in a number of fields, with the objective of offering their customers the best possible service and the same standard of quality and consistency in both airlines. They will do this by aligning their procedures and commercial policies more closely. Cooperation will be extended to the cargo sector so as to combine Delta's powerful US market with Air France's broad experience in this field as the world's third-ranking cargo airline. The two carriers will be developing their cooperation in all areas where efficiencies can be achieved.

"This strong and lasting alliance with Delta, with whom we have worked well for some time, is a very important step for Air France," declared Air France Chairman, Jean-Cyril Spinetta. "Air France, a European major, is joining forces with the largest US passenger carrier. The two airlines will build on the network advantages provided by linking Atlanta, the world's largest hub, with Paris-Charles de Gaulle, the European hub offering the best potential for growth."

"Airline customers today must be able to travel or ship cargo from anywhere in the world to everywhere else, but no one airline can meet this demand alone," Delta's Mullin said. "The Alliance we are in the process of forming will be the means for world airlines to accomplish together what no one of us is able to accomplish single-handedly."

"Delta and Air France together have begun the process of creating a multi-carrier alliance that will offer both great service and an unsurpassed route network providing access to the markets our customers seek most," said Air France's Spinetta. "While our carriers are the cornerstones in Europe and North America for the worldwide alliance to come, we are already exploring opportunities with other potential founding partners."

Operating a network of 174 destinations in 85 countries (excluding code-shared flights) Air France is well established in Europe, Africa, Middle East and Asia as well as in the Americas. It also has a predominant position on the French market, Europe's largest domestic market.

Delta, with service to 230 cities in 29 countries, is the best established airline in the eastern half of the USA, where most of the US-Europe traffic is concentrated. This year Delta was elected "Airline of the Year" by Air Transport World and "Best-Managed Major Airline" by Aviation Week.

The alliance binding Air France and Delta Air Lines is based on the clear legal framework of the French-US aviation agreement signed on 8 April 1998, which has boosted air services between France and the United States. The new alliance will enable the two carriers to pursue their growth policy on North Atlantic routes, the world's leading international market and platform for any global alliance.