Published On: Mon, Oct 27th, 2014

Survival KLM hangs on a thread

KLMAMSTERDAM, WILLEMSTAD - The management of the European aviation company Air France-KLM must adamantly intervene in the French-Dutch company to avoid technical bankruptcy. This is according to well-informed sources in Paris to the Dutch news site De Telegraaf. “The coming weeks are crucial for survival.”

Staff and unions fear mass layoffs, particularly in France, but also in the Netherlands seems to be that the time of “the blue family holding together and nobody is forced out” is over.

Thousands of jobs would be at risk, because the costs have to be reduced by 20% due to the fierce competition from European prize fighters and Turkish and Arabic long-distance operators to cope and to make financial affairs in order.

KLM's new CEO Pieter Elbers, who succeeded the dismissed Camiel Eurlings, does not want to say anything until the expected bad quarterly figures are known on Wednesday. Only the French pilots’ strike cost the company about half a billion euros.

Tomorrow the directors of Air France KLM will meet all day to take drastic measures to save the loss-making airline from collapse.

Click Tag(s) for Related Articles: