KLM-Royal Dutch Airlines

By Tom Martens

KLM-Royal Dutch Airlines is the national airline of the Netherlands with headquarters in Amstelveen and a main hub at Amsterdam Schiphol Airport, serving over 90 destinations. KLM-Royal Dutch offers both domestic and international flights and is a member of the SkyTeam alliance, the second largest airline alliance in the world.

For the past several years, KLM-Royal Dutch Airlines has been part of Air France-KLM, while it has also maintained an operating partnership with Northwest Airlines, based in Minneapolis, Minnesota, in the USA. The two-airline consortium operates a fleet of 607 aircraft that carry nearly 75 million passengers a year to 258 destinations. The Air France-KLM partnership recently obtained even more global reach by purchasing a 25 per cent stake in the Italian carrier Alitalia.

Founded in 1919 and the world's oldest air carrier, KLM ran its first flight, from London to Amsterdam, in May 1920. During World War II it ceased operations. The company was accused of helping accused Nazi war criminals escape Germany after World War II, but it has denied the allegations.

While KLM remains the world's oldest airline, it is no longer the world's oldest independent airline. Air France and KLM-Royal Dutch Airlines announced merger plans in 2003, marking the end of KLM's independent run. The merger did affect the ongoing cooperation between KLM and Northwest Airlines, however, as both companies joined SkyTeam in September 2004.

KLM gifts its long-haul first-class and business passengers with small Delftware, blue-and-white porcelain reproductions of old Dutch canal houses. The houses are filled with Dutch liquor. This practice started in 1952. There are now 88 Delftware houses as of 2008 (the airline?s age that year). A new Delftware house is added each year on October 7, the anniversary of the airline?s founding.

KLM's mileage program is Flying Blue. Members can accumulate and spend miles on flights on Air France-KLM, and also on other SkyTeam carriers and with a variety of transportation, travel, and financial companies. Flying Blue members earn four membership levels, Ivory, Silver, Gold, and Platinum, determined by their accumulated SkyTeam miles. Members can also earn miles on flights operated by Kenya Airways, which is a Flying Blue partner.

KLM?s past success isn?t protecting the airline from a bumpy future. The airline recently announced it will cut up to 2,000 jobs due to lower ticket sales and lower cargo volumes. The cuts represent three percent of the KLM workforce. KLM also plans to reduce its airline capacity by two percent in summer 2009. KLM lost $653 million dollars in the quarter ending December 31, 2008. Airline officials say they haven?t ruled out future cuts or reductions as they look to stabilize their business and return the airline to profitability.

The Australian Competition and Consumer Commission, an airline watchdog group, announced in February 2009 that the group is suing KLM over allegations of price fixing. KLM denies the charges and plans to contest the lawsuit. Qantas and British Airways were recently fined $20 million and $5 million for similar allegations of price fixing.

About the Author:

0 comments: