KLM-Royal Dutch Airlines
Thursday, February 26th, 2009KLM-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.
Fliers in first or business class on KLM are given souvenir porcelain reproductions of old Dutch canal houses, the Delftware miniatures filled with a Dutch liqueur. KLM’s practice of handing out the Delft porcelain miniatures began in 1952, and, as 2008, the company’s eighty-eighth year in operation; there are 88 models of the houses. Each October 7 the company celebrates the anniversary of its founding with a new Delftware design.
KLM?s frequent flyer program is called Flying Blue. Flying Blue members can earn and spend mileage points on flights and services of Air France-KLM, other companies of the SkyTeam airline alliance and assorted other financial, travel, and transportation companies. Flying Blue contains four membership levels ? Ivory, Silver, Gold and Platinum. Level miles are gained by taking any flights with an AF or KL code or flights operated by one of SkyTeam’s airline companies under the code of any other SkyTeam airline, or flights operated by Kenya Airways, which is a Flying Blue partner.
The venerable history of KLM-Royal Dutch Airlines has not shielded it from the current year’s economic turbulence. On account of declining ticket sales and lower cargo traffic, Air France-KLM announced recently that will lay off up to 2,000 workers. These job cuts represent about 3 per cent of the total workforce. The company further plans to reduce its airline capacity by about 2 per cent in the summer of 2009, hoping to compensate for the $653 million loss it posted for the fourth quarter of 2008. Company management has said it has not ruled out even more future job reductions or flight terminations as the company seeks to stabilize its finances and return to profitability.
An airline watchdog group based in Australia, the Australian Competition and Consumer Commission, announced in February 2009 that it is suing Air France-KLM over price fixing allegations. KLM denies the charges and will defend against the suit. British Airways and Qantas were recently fined $5 million and $20 million over similar price fixing allegations.