KLM: National Airline Of The Netherlands
The flagship carrier of the Netherlands is KLM-Royal Dutch Airlines, hosting a main hub at Amsterdam’s Schiphol Airport and headquartered in nearby Amstelveen. Offering both domestic and international service, KLM-Royal Dutch airlines serves over 90 destinations, and is also a member of the world’s second largest airline alliance, SkyTeam.
KLM-Royal Dutch Airlines is part of Air France-KLM, and also has an operating agreement with Northwest Airlines, based in Minneapolis. The KLM group serves nearly 75 million passengers every year, runs a fleet of 607 aircraft, and reaches 258 destinations. Air France-KLM recently expanded its global reach even further by purchasing a 25 per cent stake in the Italian airline Alitalia.
Founded in 1919, KLM-Royal Dutch Airlines is the world’s oldest air carrier. It ran its first flight in May 1920, from London to Amsterdam. During the German occupation World War II, KLM ceased operations; although it has been accused of helping war criminal flee Germany after the second World War, the company consistently denies the charges.
Air France and KLM announced their plans to merge in 2003, marking the end of the oldest independent airline in the world. However, the merger did not impact KLM’s long time partnership with United States based Northwest Airlines, as both companies joined the SkyTeam alliance 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.