Home Airlines Tensions between Air France and KLM?

Tensions between Air France and KLM?

Air France chief replies to Dutch complaints

1
SHARE

Air France chief replies to Dutch complaints.

Tension may be appearing between the two major airlines in the Air France-KLM alliance. Air France’s chief executive, Frederic Gagey, has taken the step of making an unusual direct approach to the Dutch public following several damaging stories in the Dutch press.
Newspapers in the Netherlands allege that opposition is growing at KLM to the group using the Dutch carrier’s approximately €1 billion in annual operating profit for group purposes, rather than reinvesting it.
Gagey’s letter in the Netherlands’ biggest daily Het Financieele Dagblad stresses that Air France’s costs have been reduced since 2012 and 7,000 jobs have been cut.
“The idea that KLM feels all the pain and that Air France isn’t doing anything is completely wrong and a blow to the whole group’s 95,000 employees,” he writes.
“The annual figures of Air France-KLM that will be published this month will show how Air France has improved its financial situation as of the end of 2014.”
Earnings are due on February 19. Last year, Air France-KLM issued three profit warnings. In the third quarter, an Air France pilots’ strike cost the group €330 million.
Reuters
[pictured: Embraer 90; courtesy KLM]

1 COMMENT

  1. KLM is in the grip of the french airline and its employee unions. It is a well known factor that the whole time since the merger of AF and KLM tensions has been increasing as AF has refused to make use of the Top-of-the -line KL-staff and losing some of the best people going to other Carriers.
    -AF has done Everything to minimise the know-how from KLM management employees and has put french management teams in almost all positions World wide.
    -The proffessional relations between KLM and its Dutch unions has not been implemented between AF and the french unions ,resulting in very expensive and brand image destruction.
    -The KLM stafff reputation as some the very best in the business, in countrary to the poor and up-nosed attitude among the french staff and poor passenger service as a result.
    -Investment in Equipment has also been reduced for the profitable KLM part of the business in favor of the lossmaking AF side of the Company.
    -It is a well known fact in the trade that KLM has, through a professional management and customer relations managed to operate at profit for most years of the years under the AF/KL joint Company.
    -It is also a well known fact that the AF-losses would have been far more critical, had they not been able to transfer KLM-profit to make up for AF-losses.
    -Hopefully the owners, mainly the french Government will realise these facts and reconstruct the leadership of the Company in order to survive.

LEAVE A REPLY

Please enter your comment!
Please enter your name here