KLM will announce more on Friday about the upcoming reorganization. When the airline announced that it would receive state aid at the end of last month, the associated conditions were also announced. Reorganization was a tough requirement. KLM CEO Pieter Elbers then said that the first contours of this restructuring should be visible at the end of July.
“Then we will say something about the job loss,” said Elbers. It is therefore in line with expectations that KLM will present numbers on Friday morning when the financial figures for the first half of 2020 are presented.
For the aid package with a size of 3.4 billion euros, the cabinet made it a condition that the costs at KLM go down. It is a decrease of 15 percent across the board. According to KLM’s annual report, costs amounted to 9.1 billion euros last year, which would amount to a cut of 1.3 billion euros.
Part of the cut is taken from the staff. KLM not only cuts the workforce, but also cuts salaries. The government has also said that KLM employees who earn more than three times as an average must hand in at least 20 percent of their salary.
Voluntary departure possible for all staff
But workers who earn less should also offer wages. In mid-May, long before the conditions of the cabinet were discussed, KLM already announced that it was necessary to reduce the workforce. The airline then opened a voluntary departure scheme for all personnel. “In anticipation of necessary next steps,” said KLM.
In mid-July, it was announced that some 2,400 employees had registered for the departure scheme, which does not mean that all those applications are accepted. KLM said that more will be announced about this at the end of July. “Only then can we state exact numbers.” KLM currently employs 33,000 people.
The reorganization plan must be finalized in October
The unions are not happy with how the financial support package with the associated conditions came about. The unions were not involved in any way, while the measures do affect the working conditions of the workers.
Last week, the pilots announced that they wanted to renegotiate the conditions. But Elbers was clear the day the aid package was announced. “I am glad we are out and the support package at least offers stability. Now we need to focus on restructuring.”
The final reorganization plan will be announced in October. Like other airlines, KLM is in dire straits due to the corona crisis. Due to the corona virus, there are restrictions on travel and many people no longer want to fly.
The publication of the half-year figures on Friday will probably also reveal how many passengers have been transported in recent months. KLM has not made any statements about this since the beginning of April.