Air UK originally was a wholly owned subsidiary of British Air Transport (Holdings), a successor to the Air Holdings Group owned 90% by B&C and 10% by Eagle Star Insurance. This made the Cayzer family, who owned B&C, the controlling shareholders. Following the beginning of the gradual liberalisation of the European Union (EU) internal air transport market in 1987, Dutch flag carrier KLM, a long-standing business partner of Air UK and its predecessor Air Anglia, acquired a 14.9% minority stake in Air UK's holding company. In 1995, KLM increased its minority stake in Air UK to 45%. In 1997, KLM became Air UK's sole shareholder when it acquired B&C's stake in British Air Transport (Holdings). The following year Air UK was renamed KLM uk.