Most network carriers around the globe are dealing with similar issues. While demand is strong, costs have increased considerably following the pandemic, and on top of that, margins are down a bit, as more airlines have restored capacity.
Continue reading: KLM Plans Major Cost Cutting To Strengthen Finances
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Ah, the classic "we're losing money, let's remove incentives for high-yield pax to pay extra to fly with us" approach. I'm sure it's gonna be a roaring success, just like over at LH Group.
KLM already relies upon cheaper immigrant staff at its AMS airport in lounges, etc. Whether they're KLM employees or contractors, I don't know. To reduce overhead in terms of employees, it could:
1) Further reduce staff at gates and go to fully automatic boarding
2) Further reduce staff at lounges and go to fully automatic checkpoints for lounge access like SAS
3) Further reduce staff at airport check-in desks and have automatic check-in kiosks
4) Hire non-EU flight attendants
"Certainly DL's influence in AF's boardroom played a part;
you do realize that AF/KL is about 10% owned by DL as well?
The fact that you seriously don't think that DL has an oversized level of influence with its partners - and AF/KL/DL/VS IS the world's largest joint venture is the real surprise.
You are beyond ignorant if you think that what DL is doing didn't influence AF.
If you don't think that DL doesn't have influence in the companies in which it has equity - and often a board seat - you simply don't want to admit that DL did something "
The Dunnster fire's own words. Per Tim, Delta is responsible for everything mentioned in this article.
But alas, Delta doesn't have a 10% stake in AF/KL nor does their minor stake (lower than China Eastern) mean much despite Timmy's biggest hopes and dreams.
He constantly reminds everyone why Delta fired him.
Its so interesting watching klm becoming almost a budget airline while air France becomes a more premium airlines.
There's also the old chestnut of "we have issues with maintaining our planes, let's cut the new buildings that the department responsible for this require!"
KLM is almost the low cost division of the group. France has a significantly higher population and is investing in a premium product. The new Lounge opened at CDG 2F not so long ago, there’s the concierge service, upgraded premium cabin as well as a new La Premiere coming shortly.
In addition they invest a lot in their catering as you would expect from
a french company.
KLMs food is generally awful. Who goes the Netherlands for their cuisine?
I agree. KLM has been operating as a low-cost carrier with a legacy intra-Europe business-class that it has to operate to handle connecting international passengers. Even its international business-class is mediocre at best.
The lounges at Amsterdam are awful. The food is school or hospital cafeteria food.
For rebooking issues, etc. The SAS lounges I’ve used had automatic checkpoints. Amsterdam has a similar model but they still could cut staff. When I was at AMS in June, the EU lounge for KLM had at least 7 agents at the entrance and service desks.
Only real perks are the dutch houses & a decent international connection network
I guess you missed a government change in The Netherlands. Right now it's the populists in charge and they didn't exactly put cutting flights at Schiphol on top of their agenda.
What's actually a real issue in The Netherlands right now, is a severe shortage of skilled labor in those segments KLM is looking for. That has impact on wages, sick leave, efficiency - basically all the things mentioned in the bullet points. That, plus the cost structure of Schiphol, which is one of the most expensive airports of Europe in terms of passenger costs.
I'm sure KLM will make it through this round, somehow. I'm just not sure if Rintel and her team thought some of the measures through. If they make the seat configuration denser, people will stay away after having had an awful flight experience, for example. We'll see.
I guess you've never visited Schiphol, right?
1. This is an airport investment, not a KLM investment. Besides, this was already in place at a lot, if not all, gates pre-covid.
2. SAS has staff at the entrance their lounges. They didn't always have it at SAS Cafe back in the days, but they have it at all lounges. Always at least 2 lounge dragons at CPH, OSL and ARN.
3. KLM was one of the first airlines in the world to have both self service check in for passengers and luggage at Schiphol. They have staff around in case people need some help with checking in or with their luggage, but all has been automated there for years. The exception, of course, is flights where manual checks are mandatory.
4. KLM already has a lot of staff from all over the world. It doesn't really matter, as wages are mostly set via collective agreements. Cutting salaries in The Netherlands simply because people were born somewhere else would lead to scandals and court cases.
I've found that KLM tickets in Business are often more expensive than Air France. Especially their European business class. I've also noticed that KLM business tends to not sell out all their business class seats while Air France does. Air France definitely seems premium when you look at the quality of food served. While KLM, especially within Europe, is among the worst. The taste of their lounge food is not great either.
As all the airlines suffer from same symptoms, why they stopped the on board duty-free sale? This might bring back additional revenue or I am wrong?
Wouldn’t be surprised to see them move to BOB drinks and snacks in short-haul economy. The sandwiches they’ve been offering are more generous than other EU mainline carriers.
If they cut long-haul business class catering or wine quality any further, they might as well just serve the same thing as economy. Meals have been terrible the last couple years and there isn’t a single wine that’s more than €10 a bottle. Short haul business class is already just cold boxes for a few years now.
I’ve been getting more and more disappointed with KLM’s service over the last few years… hope this isn’t the final nail in the coffin.
Once you see the word “synergy” in a press release, you know it’s gonna be a mess.
As frequent business/first passenger the more the airlines cut and squeeze the less often I choose to fly and the less loyal I am to any airline. As the management of these airlines try to squeeze every last cent out of their business model they seem to forget that nobody HAS to fly with them or indeed with any airline and that passengers will ultimately look after their own interests. I was Gold with BA for years but constant battles with cuts, cancelled flights, poor service and administration made me give up on them as my main supplier so where I was spending many thousands a year I am now spending almost nothing, so their cuts were a smart move!
I am flying today business class KLM, on a route to AMS they are alone to fly. Allthough I bought the ticket and got my boarding pass on the AF app, I do not have access to digital press (even in the AF lounge !). What a shame for KL to be reducing costs so badly its business class passengers are treated like that.
Probably my last KL return trip.
They spend fuel carrying a lot of stuff that hardly anyone buys, and they can't even do duty free sales within the EU.
BOB's already been announced from early '25. Might be on a trial basis though, check FT forum for details- I avoid KLM wherever possible as I hate their rodent-infested home airport.
KLM also no longer allows same-day changes to business-class. So if you're flying the 4 pm flight from Amsterdam to wherever but the 2 pm has empty seats, you can't switch.
And worse yet, anyone who buys a business-class ticket or buys an upgrade within 24 hours of departure, which happens quite a bit since KLM will even upsell at check-in, doesn't get a meal due to limited catering.
10 euro wine? Try 5 euro. Maybe the Spanish cava sparkling wine that they serve in business-class is 7-10 euros. The red and white wine is definitely not even 5 euros. I don't think KLM even serves 10 euro wine in its lounge.
KLM has always had among the worst and cheapest wine, at least intra-Europe.
Air France has gotten a lot better in the last couple of years. The meal they serve on the 1-hour flight between London and Paris rivals what Delta serves domestically in first. And the champagne! If you're lucky, you can get in three pours of champagne. I did a whole bottle earlier this year, when the plane circled and circled due to Heathrow delays.
Which is why KLM could cut costs by phasing out most of its Dutch flight attendants and instead hiring cheaper cabin crew from eastern Europe or outside Europe.
I love how airline CEOs talk about "optimizing" the aircraft space instead of just saying "densifying."
What is rather unfortunate is that I far prefer the AF business class product, but I hate CDG with an undying passion. It is literally the most confusing airport I have ever tried to navigate. The food on our last KLM flight was frankly embarrassing. That little delft house was just hanging its head in shame at what they gave us as a business class "meal." LHR is the definition of crowded chaos, but at least they have lots of direct flights to secondary US cities.
Why do so many airlines have management that doesn't seem to understand that they cannot achieve a revenue premium without a product that matches. There is no room in the middle: if I want the cheapest flight, I will just take Air Portugal (the food wasn't that bad, FAs were great, and at $2k r/t C US-EU, my expectations are much reduced). If I am going to be paying substantially more than this, I expect good service, edible food, and a comfortable cabin.
Delta's stake used to be around 10%, but looks like it's down to 3.2% now. I'm pretty sure they at least used to have a seat on the board. Not sure if they do anymore or not, though.
Correct. And non Dutch staff will not speak Dutch, I suppose. I don't think if anyone would like to learn it just to work for KLM !