In 2003 (before they were bought up by Air France) the fleet of KLM consisted of 22 Boeing 747-400 - 8 Boeing 747-300 - 10 MD-11 and 12 Boeing 767-300 ER KLM had 2 Boeing 747-400 Extended Range Cargo airplanes. They also used 46 Boeing 737 and 35 Fokker jets. In October 2003 their first Boeing 777 arrived. 10 Boeing 777-200 ER were going to replace the Boeing 747-300 and 2 MD 11.

In September 2003 KLM was bought up by Air France. On Tuesday September 30th 2003 it was announced that KLM was bought up by Air France. KLM shareholders get 1/5th of the combined company. Shareprice of KLM was getting weak as the company made losses. The deal was done with a value 40% above the shareprice. This valued KLM at 961 million euro. First quarter’s cash flow from operating activities in 2003 was EUR 25 million negative. Net investing cash flow amounted to EUR 118 million. Therefore, free cash flow in the first quarter was EUR 143 million negative. The cash inflow from financing activities (EUR 146 million) includes the export financing for two Boeing 747-400ER freighters received in this quarter. As of June 30, 2003, KLM Group had cash and cash equivalents totaling EUR 894 million, of which EUR 611 million is in cash and EUR 283 million is in Triple A bonds and long term deposits.