KLM Restructures


KLM is restructuring the organization of the Group and its airline affiliates to fully support its strategy for serving the three key segments of the passenger market.


KLM Group will focus on three product/market combinations and align its business to serve these segments:


- the global network operator, supported by regional feeder operations at its network hubs;


- the charter and scheduled services for the leisure market;


- the low-cost operations.

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Global network carrier and feeder operations:
KLM and its alliance partners maintain a global network operated from their hubs in Europe, the United States, Africa and Asia. KLM’s regional affiliates KLM cityhopper and KLM uk provide feeder services for the global network from regional European airports to and from the Schiphol hub.KLM’s global network and feeder operations will be strengthened by bringing KLM uk and KLM cityhopper together with an integrated management team. The organizations and operations of these two airlines will be more closely coordinated, while their flight operations with cost-effective Fokker 100, Fokker 70, and Fokker 50 equipment will be further optimized.

 

 


Leisure operations


Within the KLM Group, Transavia airlines will remain responsible for serving the leisure market. This airline currently operates successful charter and scheduled services to a wide range of vacation destinations in Europe, North Africa, the Mediterranean area and Central Asia. Transavia will standardize its fleet to one aircraft type, the Boeing 737, to ensure maximum operational flexibility and efficiency.


Low-cost operations to be further developed and coordinated


The KLM Group is currently active in the low-cost segment with two brands, one, buzz, operating from the UK, and the second, BASIQ AIR, operating from the Netherlands. Its experiences with both low-cost operations has led the KLM Group to decide to continue to play an important role in this fast-growing market. To optimize coordination, management of the low-cost product, operation and positioning will be placed in the hands of a single person for the KLM Group, effective April 1, 2002.


Coordination


The KLM board will maintain overall supervision to ensure that the various product/market combinations within the KLM Group are properly coordinated. After consultation with the Works Council, the following appointments will take effect on April 1, 2002. Peter Hartman, board member and chief operating officer - KLM, will take on leadership for the global network operations.


Henny Essenberg, current EVP - Passenger Division, will be appointed his deputy. He will additionally focus on alliances for the KLM Group passenger business. Paul Gregorowitsch, current SVP - Sales & Distribution, Passenger Division, will become responsible for all commercial activities benefiting these passenger activities, including sales, marketing, distribution, and revenue management. Elfrieke van Galen, current managing director - KLM cityhopper, will additionally take on management of KLM uk as CEO, to ensure greater coordination between these two regional feeder airlines.


Floris van Pallandt, current CEO - KLM uk, is appointed president & CEO - Transavia airlines. He will also be responsible for managing and positioning the KLM Group’s low-cost product and operations.


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