Amsterdam wrote:PANAMsterdam wrote:I'm getting tired of the Dutch public screaming (not here on A.net but in general) that we should 'rescue KLM from Air France'. There is a far right nationalistic movement (also) in The Netherlands with an extremely dumb unrealistic vision of our country. They believe The Netherlands should leave the EU, they believe the Rotterdam Harbor can survive without the EU, they believe KLM can survive without Air France and they believe we should get our former currency (the Guilder) back. Like what the heck is that going to solve?
The KLM of yesteryear doesn't exist anymore. KLM does not survive on its own, it couldn't survive on its own in 2003 and it can't in 2020. People are looking at an independent KLM through nostalgic eyes, which are not realistic eyes. Just like we tend to long back to the days of glamorous air travel in the Jet Age, but completely forgetting that flying in the jet age was not as safe as it is today, not as cheap as it is today, not as comfortable as it is today and so on.
KLM was on the brink of bankruptcy when they merged with Air France. The two airlines are now so well integrated that, first of all, undoing the merger would costs millions of euros and billions of headaches to achieve, secondly it would kill load factors because KLM fills AF planes and AF fills KLM planes, thirdly an independent KLM outside of Skyteam would be disastrous for AMS because for instance Delta would immediately consolidate its European hub at CDG and fourthly: who can KLM merge with? The European Commission will never allow KL to merge with LH/IAG or SAS for competitive reasons.
Imagine KLM joining the LH group, then LH would own the German, Dutch, Belgian, Swiss and Austrian market. Absolutely, totally, completely impossible.
And what people also tend to forget by suggesting adding KLM to IAG: Brexit! The Brexit still has not happend, and if BoJo and the EU can't fix a deal before 31/12/2020 all flights to and from Britain (or what's left of the flights) will come to a screeching halt on 1/1/2021 because the UK will break away from the EU in a no-deal Brexit.
My final point is that the Dutch Government owns a 14% stake in AFKLM and a 6% stake in KLM. So it is also politically impossible to simply let KLM break away from Air France, no minister wants to carry the responsibility of the death of an icon on his shoulders.
So can we please end this discussion. Air France-KLM will remain Air France-KLM, with all its quirks, shortcomings and successes. Period.
Denmark has no euro and does well, so does Norway and England and Switserland and Sweden.
The euro is not needed at all to do well and trade with other nations. Thats a fact.
Also, KLM outside of the holding with AF does not mean KLM must be “alone”. Delta is also not part of the holding but works extensively with KLM and AF.
KLM can keep working like they do with AF and Delta.
KLM out of Skyteam, KLM stopping the JV with Delta are things that you make up yourself.
And its certainly not certain that when the landscape changes perhaps after corona things will be possible that you now call will “never” be possible.
You make al lot of personal assumptions.
Denmark uses the Euro. Maintaining a hard peg with the Euro is functionally the same in monetary and macroeconomic terms.....