Skip to main content
Home

Main navigation

  • Top stories
  • Health
  • Crime
  • Politics
  • Business
  • Tech
  • Culture
  • Sports
  • Weird
  • 1-1-2
Image
KLM and Air France planes at the Charles de Gaulle Airport in Paris
KLM and Air France planes at the Charles de Gaulle Airport in Paris - Credit: hzparisien@gmail.com / DepositPhotos - License: DepositPhotos
Politics
Business
KLM
Air France-KLM
loss
Coronavirus
bailout
state aid
reorganization
layoffs
wage cuts
Wopke Hoekstra
Ministry of Finance
Pieter Elbers
Friday, 30 October 2020 - 09:02
Share this:
  • facebook
  • twitter
  • linkedin
  • whatsapp
  • reddit

KLM warns of more layoffs as parent company posts €1.7 billion loss

The consequences the second wave of coroanvirus infections had for air travel may mean further layoffs at KLM, the Dutch airline said with the announcement of its third quarter results on Friday. Parent company Air France KLM suffered a loss of 1.7 billion euros in the third quarter of 2020. KLM's loss amounted to 234 million euros, down 745 million euros compared to the third quarter of 2019.

"These results confirm just how bad things are in the air transport industry," KLM CEO Pieter Elbers said. Without the government's NOW coronavirus support scheme, which subsidizes wage costs for struggling companies, KLM would have suffered a loss of 500 million euros in the third quarter.

KLM already planned a wide array of measures to downsize in line with the sharp decline in demand and flights. By the end of this year, around 5 thousand employees will leave the KLM group. "In view of recent developments prompted by the second wave of the pandemic and the somber outlook, further rightsizing of the organization will be considered," the Dutch airline said.

A structural reduction in wage costs is one of the conditions the government set to the 3.4 billion euros support package offered to KLM, which consists partly of loans and partly of guarantees. Sources told RTL Nieuws that this condition is causing some strife between KLM and the government. A reorganization plan KLM and the trade unions agreed on earlier this month only involve short-term salary cuts. The government is demanding long-term plans.

KLM has until the end of October - today as the 31st is on a Saturday - to submit its reorganization plans to the government. And no agreements have been made on long-term wage cuts, according to the broadcaster. "If nothing changes, the billion euro loan to KLM threatens to be scrapped," political reporter Roel Schreinmachers said to the broadcaster.

KLM is important to the Netherlands and the hub function of Schiphol airport. The government is therefore willing and eager to help the airline through this crisis. But not at any price, according to RTL's sources. Finance Minister Wopke Hoekstra is not willing to budge on the conditions set to state aid, the sources said.

Follow us:

Latest stories

  • CEO: Air France-KLM takes planet health very seriously
  • Cable car over Amsterdam IJ River could depart from Westerpark area metro station
  • Rotterdam's public transport company RET facing serious financial trouble
  • Lifeguards warn water still too cold for long swims despite rising temperatures
  • Dutch central bank leader Knot concerned after employees win substantial wage increases
  • PM Rutte acknowledges making mistakes with Groningen gas extraction

Top stories

  • Investigators find €80 million in cocaine at Dutch ports
  • Appeal denied: Joran van der Sloot temporarily extradited to U.S. tomorrow
  • Amsterdam to ban polluting traffic in large parts of the city from 2025
  • Hundreds of young Dutch people at risk of forced marriage during summer holiday
  • Dutch PM says blowing up Ukraine’s dam is a war crime
  • Grants will definitely replace student loan system this year; Applications start soon

© 2012-2023, NL Times, All rights reserved.

Footer menu

  • Privacy
  • Contact
  • Partner content