ra-85154
Posts: 601
Joined: Tue Sep 04, 2001 10:16 pm

KLM Cutting Back On Flights And Staff

Thu Oct 04, 2001 4:51 pm

the Koninklijke Luchtvaartmaatschappij today decided to take actions due to the situation in the world aviation.

This I got from a website (my english was not so fast this morning)

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KLM has joined the lengthening list of airlines to reveal job and flight reductions
The airline said it is to shed 2,500 jobs, cut back working hours for another 12,000 staff and ask its employees to accept a "substantial" wage cut.

The job cuts will come from a 15% reduction in KLM's schedules.

"More far-reaching measures may have to follow in view of the uncertainty on further developments in the global airline industry," the Dutch airline said.

Chief executive Leo van Wijk acknowledged on Wednesday that KLM was facing "a difficult economic climate" ahead of 11 September.

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Martijn
The Netherlands
 
Guest

RE: KLM In Deep Trouble!

Thu Oct 04, 2001 7:06 pm

KLM is in deep trouble but the airline has money enough to fly for at least 1 year. Where smoke is, there is a fire. I think that KLM can handle the situation very well, it has one of world's best reputation of well management. KLM is the oldest airline which operates under the same company name since it started its services in 1919.
 
Flanor
Posts: 88
Joined: Mon Nov 01, 1999 5:47 pm

KLM Capacity Cuts

Thu Oct 04, 2001 9:39 pm

According to their press release: "The reduction corresponds to the capacity of approximately four intercontinental widebody aircraft and three of KLM’s European fleet units", and "The planned approach will hold KLM’s air freighting capacity at much the same level as before".

I hope this means we will keep seeing Schreiner Airways A300F, Kalitta 747F, Emirates 747-400F, Polar 747F and other cool equipment operating for KLM Cargo at AMS.

By the way Air Orange: I don't agree that KLM is in "deep trouble" as you put it. Their cash position is very good, "royal" indeed. Plus they will profit from the overall reduction of capacity in the European market as a result of the otherwise sad fall of Swissair.
 
Guest

RE: Flanor

Thu Oct 04, 2001 9:46 pm

According Dutch radio news KLM has money left for at least 6 months!
KLM President Leo van Wijk cuts his own salary by 15%. KLM will survive anyway, the airline is smart enoughand acts like major successfull American companies.
 
Guest

RE: Euro 46.000.000,- Lossed KLM Since 11 Sept.

Thu Oct 04, 2001 10:38 pm

Since the 11 September 2001 attack KLM lossed EURO 46.000.000,--. Immediate cuts plans are already being executed. Good job Van Wijk!
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: KLM Cutting Back On Flights And Staff

Fri Oct 05, 2001 1:43 am

Moreover, all top 120 KLM managers will receive 7% less and the Supervisiory Board receives 15% less (untill 25 March 2002). Anyway, KLM has no real redundancies. They only not renew temporarely contracts and external employees and demand a reduction in working hours which comes to 2,500 FTE's (Full Time Equivalents).

BTW KLM has indeed a very good cash psoition allthough KLM had in September a negative cashflow.

Regards
Laurens
 
jwenting
Posts: 9973
Joined: Mon Apr 23, 2001 10:12 pm

RE: KLM Cutting Back On Flights And Staff

Fri Oct 05, 2001 2:38 am

Unions have refused to even consider a temporary reduction in pay, even if the alternative is forced layoffs.

It won't get as bad as Sabena (hopefully) but here too the unions are once again out to destroy a company and the jobs of their members to get some press.
I wish I were flying