keesje
Posts: 8755
Joined: Thu Apr 12, 2001 2:08 am

KLM Says Can Survive Alone For Decades

Fri Feb 01, 2002 10:23 pm

KLM shares jumped nearly 7% Thursday on top of 6% earlier this week.

http://biz.yahoo.com/rf/020131/l31302882_1.html

Pretty remarkable compared to AA, UA, BA, LH and Delta Q4 results. Can they survive alone ?

"Never mistake motion for action." Ernest Hemingway
 
747firstclass
Posts: 821
Joined: Tue Mar 28, 2000 2:45 pm

RE: KLM Says Can Survive Alone For Decades

Fri Feb 01, 2002 10:45 pm

I have often felt they can survive for decades. They claim to be more pleasure and leisure travel oriented. You would have a tough time getting me to believe that. I have flowen them in business class transatlantic many times and think they are among the best in business class. If in fact they are leisure travel oriented and a bit cheaper than BA,LH, AF etc. than in a recession passengers may scout out cheaper alternatives such as KL. So I think that with the KL alliance, that business strategy etc. they have their bases covered very well. I think that statement about being able to survive decades is true and also partly a statement intended for BA. They are telling BA that they dont need BA as much as BA needs KL. Consequently, BS should cough up slots at LHR so there is openskies and the KL/BA alliance can go through. Until that time, KL is not at all interested.
 
Flanor
Posts: 88
Joined: Mon Nov 01, 1999 5:47 pm

My Advice To KLM

Fri Feb 01, 2002 11:01 pm

KLM an BA have tried to agree to a merger time and again. Now that BA/AA is out of the way the chances have gotten better. Also the current state of the business adds some pressure. Nevertheless it will never be posssible to find a division of power over the merged airline in a way that satisfies both KLM an BA.

My humble opinion is that they should try to join their european operations into one new airline to feed their hubs with each keeping a separate intercontinental operation. BA is considering seperating their european and intercontinental operations anyway.

How about it?
 
tripple7
Posts: 510
Joined: Sun Aug 22, 1999 8:53 pm

RE: KLM Says Can Survive Alone For Decades

Fri Feb 01, 2002 11:08 pm

I doubt if KLM can survive alone. They need alliances with NW, MAS, KQ, CO etc.... Without these alliances KLM would have been worse off...so to say that KLM can survive alone is not true. KLM indeed has shown great results compared to other airlines and is performing relatively well. But KLM still has an operating loss....and KLM management will do everything to make that loss as little as possible or try to turn it in a profit soon. This includes forming alliances...some where just recently formed with CO and BA. They are not going to throw away cash. So KLM can not survive alone.
 
747firstclass
Posts: 821
Joined: Tue Mar 28, 2000 2:45 pm

RE: KLM Says Can Survive Alone For Decades

Fri Feb 01, 2002 11:12 pm

I meant that KL could survive with its alliance with NW but does not really need BA, at this time. BA needs KL much, much more. To me KL is definetly in the drivers seat, at least on the issue of BA/KL.

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