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Recorded in history as the first airline alliance in the world, the relationship between KLM and Northwest Airlines began in 1989 when KLM acquired 19.3% of Northwest''s stake. Their partnership gradually developed from joint code sharing to the formation of a trans-atlantic joint venture (JV) that bound these two companies to the point of mutual dependence for the segment of their business. This case study provides an in-depth analysis on how KLM and Northwest manage the ups and downs of their relationship. The sequential analysis of this case is based on the theoretical framework presented in Figure 1 where we divide the process development of their relationship into three phases: (1) formation; (2) operation; and (3) evaluation. The operational phase is considered as a key stage for alliance continuity. This is the main reason why we concentrate our analysis on this phase. During this stage, the risk of conflict normally comes to the fore and the interaction between parties becomes more intense. It is not surprising that many alliances fail in this phase. Like the marriage metaphor, everything is exciting and great at the beginning but after a few years of living together the spouses know more about their partner. If the couple cannot accept and live with their newfound knowledge then the marriage bond is in danger. Excellent management of this phase leads to good performance in the KLM-Northwest partnership. There are five main variables which are discerned in the operational phase namely: (1) partner contribution; (2) control; (3) conflict; (4) communication; and (5) degree of interdependency.