Air France-KLM restructuring fuels confusion and concern among KLM employees
According to information obtained by De Telegraaf, Air France-KLM has quietly restructured its organization this year to give the French parent company greater control over its subsidiaries, including KLM. The move has reportedly caused confusion and unrest among KLM employees.
The shift comes as Air France-KLM CEO Ben Smith declared Thursday that “all options” are on the table to raise KLM’s operating margin to 8 percent, potentially affecting the fleet, staff, and destinations. Just a week before Smith’s remarks, KLM granted ground staff a 3.25 percent wage increase. Now employees are reportedly questioning who determines the airline’s strategic direction. “Will the real management please stand up?” trade union De Unie said Friday, according to De Telegraaf.
KLM told the newspaper that the 3.25 percent raise is part of a broader package that includes agreements on longer working hours and “more flexible staffing,” though the exact terms have not yet been finalized or published.
Although Air France-KLM earlier announced plans to cut 250 indirect jobs, insiders told De Telegraaf they now fear that number could rise given Smith’s “all options” comment.
Uncertainty is also growing around the future of KLM president-director Marjan Rintel, whose term ends in April. Employees are reportedly wondering whether she will remain in her role following the latest statements from the group’s leadership.
In June, Air France-KLM formally amended its corporate objectives, explicitly assigning the Paris-based holding company responsibility for operational oversight of its subsidiaries, rather than acting as a “paper holding.” The change marks a significant shift in governance and has fueled concerns in the Netherlands about KLM’s autonomy.
“The group’s policy authority has been expanded. This could lead to cuts in KLM’s support departments, such as marketing. We must stay alert. The recent downsizing of KLM’s executive board is a warning sign,” said Mark Rademaker, chairman of the Association of KLM Professionals.
The restructuring was followed last month by the appointment of Oltion Carkaxhija as Air France-KLM’s new chief operating officer — a move observers see as further tightening control over KLM. The company said Carkaxhija’s role is to help KLM meet its profitability target. “The entire group and its management will do whatever is necessary to support KLM,” Air France-KLM said, while emphasizing that KLM will “continue to operate independently.”
At Transavia, KLM’s budget subsidiary, no successor has been named to outgoing CEO Marcel de Nooijer, fueling speculation that Air France-KLM could eventually merge Transavia Nederland with its French counterpart. The group has denied any such plan.
“The KLM business model no longer fits its well-paid workforce. In the new A321 aircraft, passengers are crammed together like on a budget airline, without an extra lavatory. But salaries are those of a premium carrier, while service lags behind other major airlines,” a frequent flyer anonymously told De Telegraaf.
Despite financial pressures and planned workforce cuts, KLM continues to post job openings, including in departments not directly tied to flight operations.
The Dutch Airline Pilots Association (VNV) has also criticized the company for not using all available means to train additional pilots, saying KLM failed to deploy enough instructors. The union called the move “remarkable” in a letter to its members.
“Every part of the company, including headquarters, faces strict cost-saving targets. When those are met, vacancies can be filled. We carefully assess each position’s contribution to KLM’s short- and long-term goals,” a KLM spokesperson said.
