Tag Archives: KLM

KLM unveils “Travel Well” to redefine the travel experience

KLM recently launched its latest brand platform, KLM Travel Well. This platform is designed to inspire and enable travelers to make more meaningful connections with people, places and experiences when they travel.

With this platform, KLM is calling on people to move beyond the “well-traveled” autopilot that emphasizes ticking off destinations to a true “meaningful travel” experience that prioritizes real connections with people, places and experiences.

Recent research conducted by KLM with Norstat indicates that people want to change how they travel: 3 out of 4 travelers indicate they would like to travel more meaningfully on their next trip, especially Gen Z and Millennials. According to the research, a shift in travel mindset is observed: 97% of Chinese travelers express a desire for meaningful experiences on their next trip with 89% prioritizing meaningful connections with people and places over simply visiting destinations. For them, meaningful travel is all about connecting with their own self, connecting with the natural environment and enjoying spontaneity.

The decision to launch Travel Well resonates with traveler’s needs and stems from KLM’s commitment to enhancing the meaningfulness of every traveler’s journey. Guided by Travel Well, KLM will continue to prioritize genuine connections with travelers, embedding thoughtfulness and care about each and every journey into all aspects of the KLM experience: to do our own small part in creating more meaningful – and therefore more memorable and enjoyable – travel experiences.

KLM, an enabler to a more connected and meaningful travel experience

KLM strives to inspire travelers to explore new destinations and embrace diverse cultures, while facilitating opportunities for meaningful connections along the way. By introducing next-generation aircraft, integrating AI technology, offering more spacious seating, fine dining, augmented entertainment and other service upgrades both on the ground and in the air, we ensure enhanced comfort for every traveler. In addition, through our travel guides, curated recommendations for places and activities, we enable travelers to delve deeper into the cultural fabric of their destinations, weaving connections with local communities and experiences.

KLM offers travelers the opportunity to purchase an additional SAF contribution during booking, which helps to reduce air travel’s dependence on fossil fuels and makes a meaningful contribution to sustainable air travel.

The Travel Well platform is just the beginning of KLM’s multi-year commitment to enable people to make more meaningful connections with people, places and experiences while traveling. KLM has been committed to providing world-class service to its Chinese customers since its first commercial flight to China in 1948. In the Spring/Summer 2024 season, KLM will operate 23 weekly passenger flights to Amsterdam Airport Schiphol from March 31 to October 26, from 4 destinations in Greater China: Beijing (7 weekly flights), Shanghai (7 weekly flights), Hong Kong (4 weekly flights) and Taipei (5 weekly flights). The flights will be operated with Boeing 777 and 787-9 aircraft.

KLM aircraft photo gallery:

Air France-KLM enters into exclusive discussions with Apollo for a 500 million euros capital injection into an affiliate owning spare engines

Air France-KLM issued this statement:

Following announcement of the second step of equity strengthening measures at the Full Year 2021 results presentation, Air France-KLM announces that it has entered into exclusive discussions with Apollo Global Management regarding the injection of 500 million euros of capital to an operating affiliate of Air France, owning of a pool of spare engines of Air France dedicated to its Engeneering and Maintenance Activity.

The proceeds of the transaction would enable Air France-KLM and Air France to partially redeem the French State perpetual bonds, in accordance with the European Commission’s “Temporary Framework for State aid measures to support the economy in the current Covid-19 outbreak”, as well as facilitate the financing of future spare engine acquisitions under Air France’s fleet renewal program.

The structure will incur no change on operational and social aspects. Therefore, there will be no change in the way to use the spare engines, and no impact on Air France or Air France-KLM employees contracts.

The capital injected would be accounted as equity under IFRS, hence strengthening Air France-KLM’s and Air France’s balance sheet.

Air France aircraft photo gallery:

Air France-KLM orders 100 Airbus A320neo family aircraft

Another blow to Boeing. Air France-KLM issued this statement:

On December 16, 2021, the Air France-KLM Board of Directors made the decision to move forward on the Group’s goal to improve its economic and environmental performance through the introduction of next generation aircraft. In doing so, the Group also demonstrated its ability to leverage purchasing synergies.

1. Firm order for 100 Airbus A320neo family aircraft – with purchase rights for 60 additional aircraft, to renew the fleets of KLM and Transavia Netherlands, and to renew and expand the fleet of Transavia France.

The order covers Airbus A320neo and Airbus A321neo aircraft. The first deliveries are expected in the second half of 2023.

Benefiting from the latest technological innovations, the A320neo family aircraft offer the best performance in their category for the network needs of the Group’s airlines. Compared to previous generation aircraft, they offer a unit cost reduction of more than 10%, as well as a 15% reduction in fuel consumption and CO₂ emissions. Their noise footprint is also 50% lower.

Fleet renewal is the first lever to cut CO₂ emissions, with immediate effect. Alongside the use of sustainable aviation fuels and eco-piloting, it is one of the pillars of the Group’s decarbonization trajectory, which aims for net zero emissions by 2050, and -50% CO₂ emissions per passenger/km by 2030, i.e. -15% in absolute terms.

These aircraft will operate medium-haul routes in Europe, notably from Amsterdam-Schiphol – KLM’s global hub and Transavia Netherlands’ main base, and from Paris-Orly, Transavia France’s main base.

Details of the cabin configuration will be announced at a later date.

2. Signature of a Letter of Intent (LOI) for the purchase of 4 Airbus A350F Full Freighter aircraft – with purchase rights for 4 additional aircraft, to increase cargo capacity at Air France.

In the context of a steady and sustainable growth of demand for air cargo, this order would increase Air France-KLM’s cargo capacity.

Air France-KLM would be among the launch operators of the A350F Full Freighter.

This order would come with full substitution rights to Airbus A350 passenger aircraft, which constitute the new spearhead of the Air France long-haul fleet. The airline currently operates 12 of the 38 aircraft of the type on order.

Benjamin Smith, CEO of the Air France-KLM Group, said: “These evolutionary orders will position our Group airlines on the path to improved performance while accelerating our decarbonization trajectory. This is a major step forward for KLM, Transavia and Air France, which will operate the best aircraft available for their network needs. The outstanding performances of the A320neo family and of the A350F Full-Freighter, which are quieter, more fuel-efficient and more cost-effective aircraft, make them the best choices for the long-term growth of our fleet. They will be instrumental in reaching our ambitious targets, including zero net CO₂ emissions by 2050.”

As of December 15, 2021, Air France-KLM operated a fleet of 502 aircraft to over 300 destinations worldwide.

Air France-KLM loses 1.7 billion euros ($2.05 billion) in 2020

Air France-KLM Group issued this financial statement:

The COVID-19 crisis severely impacted the Full Year 2020 results:

 Revenue at 11.1 billion euros, down 59% compared to last year

 EBITDA loss at -1.7 billion euros, limited due to cost control

 Group net employee cost down 35% in 2020 compared to last year, supported by staff reductions, state support mechanisms and activity related wages. Average number of FTEs (Full Time Equivalent) in December 2020 decreased by 8,700 compared to December 2019

 Operating result at –4.5 billion euros, down 5.7 billion euros compared to last year

 Net income at -7.1 billion euros, including restructuring provision at -822 million euros, overhedging at -595 million euros and fleet impairment at -672 million euros

 Net debt at 11.0 billion euros, up 4.9 billion compared to end of 2019  At 31 December 2020, the Group has 9.8 billion euros of liquidity and credit lines at disposal

Read the full report.

KLM reports an operating loss of €768 million in the first half, will cut upwards of 5,000 positions

KLM issued this financial statement:

The dramatic consequences of the COVID-19 outbreak for the airline industry are more pronounced in KLM’s figures for the second quarter as opposed to the first quarter. Cargo business is performing well, but passenger operations have yet to display any form of structural recovery despite the fact that KLM gradually and carefully expands its network.

Passenger numbers fell by 95% in the second quarter of 2020, from over 9 million to less than half a million. Operating income amounted to a loss of €493 million. During the same period in 2019, we earned €270 million in profit.

The figures for the first half-year reflect a marginally more favourable picture, because KLM performed well in January and February before the outbreak of the COVID-19 virus. Nonetheless, KLM’s turnover almost halved to a figure of €2.8 billion in the first six months of 2020 in comparison with the same period in 2019.

Operating income amounted to a loss of €768 million for the first half-year, compared to a profit of €223 million for the same period in 2019. A decline of almost €1 billion.

Capacity fell by more than 50%, coupled with a decline in passenger numbers of more than 60% to a figure of 8.1 million for the KLM Group as whole. Of this figure, KLM transported 6.7 million passengers and Transavia 1.4 million. Cargo performed relatively well: cargo volume amounted to 229,550 tonnes, representing a 22.3% decline. Despite reduced (belly) capacity, flights to a range of destinations only carried cargo instead of passengers. Cargo was also carried in the cabins of passenger aircraft.

“These financial results serve to highlight the huge impact of this unprecedented crisis for the airline industry and KLM in particular. A loss of €800 million for the first six months of the year is the worst financial setback ever experienced in KLM’s history.

In the months ahead, KLM will continue to expand its European and intercontinental network. This is an important step towards recovery, albeit both limited and cautious. The road to recovery will be long and fraught with uncertainty. Even though we have already done a lot, further far-reaching measures will unfortunately be unavoidable.

And, despite this unbelievably difficult period and equally challenging circumstances, KLM’s employees are still doing everything possible to serve our customers. I appreciate this greatly and have enormous respect for everyone’s efforts.”

KLM President & CEO Pieter Elbers

KLM is in the throes of a crisis of unprecedented magnitude. Since the outbreak of the COVID-19 virus at the start of 2020, numerous measures have already been taken to deal with the current circumstances. Expectations are that the road to recovery will be long and fraught with uncertainty. This means that KLM’s structure and size must be rigorously adjusted even further in the years ahead.

Consequently, a total of 4,500 to 5,000 positions in the entire KLM Group (expressed in FTEs) will cease to exist.

In the wake of the coronavirus outbreak, KLM gradually began reducing the size of its network in February to operate less than 10% of its original number of flights by the start of April. In the second quarter, only 15% of the original number of flights were operated. In July, 30% of the original flights were operated and load factors are lagging behind. As a result, while the network is again being gradually and carefully expanded, revenues are lagging far behind.

Prospects for the airline industry – and KLM in particular – are uncertain. Different countries are now beginning to tighten their more relaxed travel restrictions. This is making customers more cautious when it comes to booking a ticket. In all scenarios, demand is only expected to recover by 2023 or 2024 at the earliest. The degree and speed of recovery will depend on a number of factors including the development of the virus, economic recovery and customer travel behaviour.

Adjusting to the new reality

Government support in the form of a direct state loan and guaranteed bank credit facilities amounting to a maximum of €3.4 billion will enable KLM to navigate the crisis in the forthcoming period. KLM is extremely grateful for this support provided by means of the loan. In order to guarantee KLM’s existence in the longer term, the airline must adapt its size to the new reality. KLM therefore finds itself compelled to reduce its workforce down to the number needed for the planned operation in 2021/2022. Of the current total of 33,000 FTEs in the entire KLM Group, the workforce must be reduced by 4,500 to 5,000 FTEs to 28,000 FTEs in the course of 2021.

KLM’s size is already becoming smaller – and will continue to be reduced – based on the current measures, which include the non-renewal of temporary contracts (1,500 FTEs) and the Voluntarily Departure Scheme (2,000 FTEs). Additionally, natural attrition (500 FTEs) through retirement and the like in 2020 and 2021 will also contribute to the reduction needed.

Hence, despite the measures already taken, even fewer people will be needed at KLM in the years ahead. Additionally, for positions on the ground we also need to deal with some mismatch in functional skills and capabilities.

Unfortunately, for this reason and taking into account the mismatch, alternative solutions will have to be found for ca. 1,500 positions. This relates to up to 500 ground positions, 300 cabin crew positions and 300 cockpit positions and approximately 400 positions at KLM subsidiaries and Air France-KLM group functions.

Given the high level of uncertainty, KLM keeps open the possibility of further reductions in case the production levels will be revised further down for 2021/2022 than the -20% planned now.

Trade unions and Works Council

KLM’s reorganisation plans tie in with organisation-wide changes at Air France KLM. In the forthcoming period, KLM will be cooperating closely with the trade unions to draft a social plan for each collective labour agreement domain and subsidiary, as well as maintaining close consultation with the Works Council about further defining the reorganisation. This will include a more detailed specification of the conditions set by the Dutch government on issuing the financing package. Expectations are that this will be finished in its entirety in the course of October.

Air France-KLM takes exceptional measures due to coronavirus, grounds A380s and 747-400s

Air France-KLM have released this message:

The COVID-19 crisis has continued to spread in recent days, leading many countries to take increasingly stringent measures in an attempt to slow the rate of spread of the epidemic. Some countries have imposed constraints on the movement of travellers from France, the Netherlands or more broadly from Europe. In France, the transition to a level 3 public health emergency requires the closure of all non-essential services since last weekend.

Faced with these growing restrictions on the possibility of travelling and a strong downward trend in demand which has resulted in a drop in traffic and sales over the last few weeks, the Air France-KLM Group is obliged to gradually reduce its flight activity very significantly over the next few days, with the number of available seat kilometers (ASK) potentially decreasing between -70% and -90%.

This reduction in capacity is currently scheduled to last two months, and the Group will continue to monitor the evolution of the situation on a daily basis andadjust it if necessary.

Photo: Airbus and Air France.

As a result of this reduction in capacity, Air France will ground its entire Airbus A380 fleet and KLM its entire Boeing 747-400 fleet.

To deal with this situation, the Group has already taken a number of strong measures to secure its cash flow:

 Additional savings measures have been identified, which will generate €200 million in 2020
 An initial review of the investment plan has reduced the capital expenditure plan by €350 million, to
which will be added the impact of the decline in activity on the amount of maintenance investments
 Air France and KLM will be consulting with their elected employee representativeson measures to take into account the impact of the expected decline in activity, including a project to implement partial activity
 Last week, the Air France-KLM Group drew a revolving credit facility for a total amount of €1.1 billion and KLM drew a revolving credit facility for a total amount of €665 million. As of March 12, the Group and its subsidiaries had more than €6 billion in cash and cash equivalents
In spite of the measures taken, the deterioration of the environment linked to the epidemic and the sharp reduction in its activity that has resulted today lead the group to forecast a sharply deteriorated financial trajectory compared to the outlook presented at the publication of its annual results. Indeed, the Group estimates that the drop in revenues from the Passenger business resulting from the reduction in capacity will only be offset by around 50% by the drop in variable costs before cost savings measures.

In this extremely difficult context, the Air France-KLM Group has welcomed the statements made by the French and Dutch governments, which have each indicated that they were studying all possible means to support the Group.

Air France aircraft photo gallery:

Air France-KLM suspends all flights to China

The Air France-KLM Group continues to closely monitor the developments of the outbreak of the coronavirus in China, while maintaining close contact with international health and aviation authorities. After careful consideration of the developing situation, on January 30, 2020 the Air France-KLM Group decided to suspend all Air France and KLM flights to and from China until February 9, 2020.

“The health and safety of our 85,000 employees and our 100 million customers is our highest priority,” said Benjamin Smith, CEO of the Air France KLM Group. “I am proud of the professionalism of our employees in Europe, in China, and abroad, and their relentless dedication to ensuring their operating and non-operating colleagues, as well as our customers, can return home to their families. We continue to closely monitor the situation together with our partner China Eastern. ”

Starting Thursday, January 30, 2020 Air France will operate special flights to and from Shanghai and Beijing using volunteer crew members in order to permit employees and customers to return to Paris, while KLM’s flights departing from Amsterdam until Sunday, February 2, 2020 are intended to give as many employees and customers as possible the opportunity to return to Amsterdam from Beijing and Shanghai.

China Eastern, Virgin Atlantic, Air France and KLM announce its intention to launch a joint venture

China Eastern Airlines made this announcement:

On October 16, 2019 China Eastern has announced its intention to enter into a joint venture with Virgin Atlantic, Air France and KLM, providing more valuable and attractive joint commercial propositions for customers between Europe and China.

China Eastern currently has joint venture with Air France and KLM by working together on a portfolio of flights between China and Paris, Amsterdam. With Virgin Atlantic joining the existing partnership between China Eastern, Air France and KLM, the enlarged cooperation will offer strengthened customer benefits including increased travel options and optimized connectivity across Europeand China,further facilitated by a developed joint network, as well as competitive joint commercial propositions.

The China to United Kingdom markets are expected to be pivotal at a time where China Eastern and Virgin Atlantic services linking Londonto Shanghai are part of the mutualized offer. China Eastern plans to seek to codeshare for the first time on Virgin Atlantic services between London and Shanghai. This will open up a range of customer benefits, including the opportunity for customers to earn and redeem miles across both carriers on flights between China and United Kingdom.

The announcement reaffirms China Eastern’s commitment to the European market, which will inject new vitality into her international development, network construction and service improvement and will also contribute to the internationalization of China’s civil aviation and the Belt and Road Initiative.

China Eastern aircraft photo gallery:

Air France, KLM and China Eastern announce plans to step up joint venture cooperation with the addition of Virgin Atlantic

Air France, KLM, China Eastern and Virgin Atlantic have signed a MOU concerning the extension of the existing joint venture between Air France, KLM and China Eastern with the addition of Virgin Atlantic, thus providing customers with an increased choice of flights and itineraries when traveling between Europe and China. The announcement reaffirms the Air France-KLM Group’s commitment to the Chinese market, having already implemented an enlarged scope of cooperation with China Eastern in January this year.

Scheduled to enter into force in spring 2020, the cooperation will offer customers an increased number of flights and itineraries between Europe and China, further facilitated by mutual code-sharing, as well as competitive joint commercial propositions. The United Kingdom to Shanghai markets and the connecting flight network within China are expected to be pivotal at a time where China Eastern and Virgin Atlantic services linking London to Shanghai are part of the mutualized offer. It will open up a range of customer benefits when flying and connecting across carriers, including the opportunity for customers to earn and redeem miles.

Flight schedules

Air France, KLM and China Eastern’s current Joint Venture schedules (summer 2019 season):

Air France:
- twice-daily frequencies between Paris – Charles de Gaulle and Shanghai – Pudong
- 3-weekly frequencies (4-weekly in peak periods) between Paris-Charles de Gaulle and Wuhan
KLM: 12-weekly frequencies between Amsterdam – Schiphol and Shanghai – Pudong

China Eastern:
- twice-daily frequencies between Shanghai – Pudong and Paris – Charles de Gaulle
- 4-weekly frequencies between Shanghai – Pudong and Amsterdam – Schiphol
- 3-weekly frequencies between Kunming and Paris-Charles de Gaulle
- 3-weekly frequencies between Qingdao and Paris-Charles de Gaulle

Services between London and Shanghai by Virgin Atlantic and China Eastern are intended to be included in the envisioned joint venture cooperation (summer 2019 season):

Virgin Atlantic daily services to Shanghai – Pudong from London – Heathrow
China Eastern daily services from Shanghai – Pudong to London Heathrow and 3-weekly frequencies to London – Gatwick

KLM orders two additional Boeing 777-300ER jets

Boeing made this announcement:

Boeing and KLM Royal Dutch Airlines have announced that the carrier has ordered two more 777-300ER (Extended Range) airplanes.

Above Image: Boeing.

The order, valued at $751 million at current list prices, was previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website.

The 777-300ER can seat up to 396 passengers in a two-class configuration and has a maximum range of 7,370 nautical miles (13,650 km). The airplane is the world’s most reliable twin aisle with a schedule reliability of 99.5 percent.

Operating out of its home base in Amsterdam, the KLM Group serves a global network of 92 European cities and 70 intercontinental destinations with a fleet of 209 aircraft. The carrier operates 29 777s, including 14 777-300ERs. It also flies 747s and the 787 Dreamliner family.

KLM, the world’s oldest airline still operating under its original name, is celebrating its centenary this year. In 2004 it merged with Air France to create Europe’s largest airline group. The Air France-KLM Group is also one of the largest operators of the 777 family with nearly 100 between the combined fleets.

Top Copyright Photo: KLM Royal Dutch Airlines Boeing 777-300 ER PH-BVU (msn 61702) PAE (Nick Dean). Image: 939290.

KLM aircraft slide show: