Posts: 40
Joined: Fri Oct 26, 2001 11:18 am

KLM Warns Of Further Job Losses

Thu Nov 01, 2001 11:07 pm

KLM warns of further job losses if business deteriorates

KLM believes the 15% cut in capacity and the related cost-savings it has made this winter will be enough to counter the current decline in air traffic, but warns that forced redundancies will be unavoidable should conditions deteriorate further.

The carrier has already cut the equivalent of 2,500 full-time positions, half through ending temporary contracts and the remainder through the initiation of short-time working for around half its staff.

But speaking at a press conference in Amsterdam today, at which the airline revealed it will make a significant operating loss for the financial year, KLM managing director and chief financial officer Rob Ruijter admitted that the carrier has all but used up the flexibility inherent in its costs

“We’ve taken the appropriate measures for the current trading environment,” he says. “We’ve done everything we need to in the current environment.”

But he adds: “If we see demand drop any further, and we don’t see it [in our forward bookings] yet, it would mean cutting capacity further.”

This would then lead to further cost cuts and Ruijter warns that the airline has done the “easy bit” in cutting staff costs without forcing redundancies.

“We have made use of all the flexibility we have,” he stresses.

One further measure from which KLM still hopes to benefit is the part-deferral and part-reduction of planned staff salary rises. KLM has put a proposal to the unions and Ruijter says discussions are continuing but should be finalised before the end of November.

He would not comment on what effect such a step might have on helping to reduce any possible compulsory job cuts, saying: “It’s cash-management driven. That remains on the table and from a cash point of view would help tremendously.”

Posts: 260
Joined: Mon Jul 04, 2005 9:59 am

RE: KLM Warns Of Further Job Losses

Fri Nov 02, 2001 1:06 am

Just for the record, I have always loved KLM. Flights with this carrier have always been most enjoyable, and their upper-deck World Business Class is excellent.
Also, Amsterdam Schipol Airport is the BEST airport for European connections. 5 stars from Johnnie Rotten awarded to this, the worlds oldest air carrier. I salute KLM!  Smile/happy/getting dizzy

Popular Searches On

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos