Airline KLM is introducing a series of measures to improve the company’s performance. The company is going to cut costs and “simplify” the organization. Certain investments are also being postponed or canceled.
According to CEO Marjan Rintel, KLM is not in a good position despite the growth in turnover: “Like many other airlines, KLM is suffering from high costs and shortages of employees and equipment. Our planes are full, but our capacity is still not back to pre-corona levels.”
The interventions are necessary to remain a leading aviation company, says Rintel: “We want to maintain our 105-year pioneering role in aviation and continue to connect the Netherlands with the rest of the world. If we want to continue to do this in a healthy and strong way, we have to make clear choices.”
Painful and necessary
A billion-dollar investment in new, cleaner aircraft is not in jeopardy, the company says, but automation and mechanization should increase labor productivity and reduce absenteeism. Staff productivity should also increase by adjusting work schedules. It is not yet clear whether staff will be laid off.
Rintel does call the measures “painful for every colleague” and says the company will try to save as many jobs as possible. The works council and the unions have been informed.
One of the investments the company may cut to save money is the planned construction of a new headquarters. KLM, part of KLM-AirFrance, is also struggling with a shortage of pilots and is taking measures to improve the occupancy of flights. Whether that means fewer flights, the company does not say.
