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Royal White

KLM: National Airline Of The Netherlands

The flagship carrier of the Netherlands is KLM-Royal Dutch Airlines, hosting a main hub at Amsterdam's Schiphol Airport and headquartered in nearby Amstelveen. Offering both domestic and international travel service, KLM-Royal Dutch airlines serves over 90 destinations, and is also a member of the world's second largest airline alliance, SkyTeam.

For the past several years, KLM-Royal Dutch Airlines has been part of Air France-KLM, while it has also maintained an operating partnership with Northwest Airlines, based in Minneapolis, Minnesota, in the USA. The two-airline consortium operates a fleet of 607 aircraft that carry nearly 75 million passengers a year to 258 destinations. The Air France-KLM partnership recently obtained even more global reach by purchasing a 25 per cent stake in the Italian carrier Alitalia.

KLM-Royal Dutch is the world’s oldest airline and was founded in 1919. KLM-Royal Dutch operated its first flight in May 1920 from London to Amsterdam. The airline stopped operating during World War II. KLM-Royal Dutch Airlines has been accused of helping Nazi war criminals flee Germany after World War II, a charge the company denies.

KLM and Air France announced their plans to merge in 2003, marking the end of KLM as the world's oldest independent airline. The merger did not, however, affect the long term partnership between KLM and Northwest, as the two companies both joined the SkyTeam alliance in September 2004.

Fliers in first or business class on KLM are given souvenir porcelain reproductions of old Dutch canal houses, the Delftware miniatures filled with a Dutch liqueur. KLM's practice of handing out the Delft porcelain miniatures began in 1952, and, as 2008, the company's eighty-eighth year in operation; there are 88 models of the houses. Each October 7 the company celebrates the anniversary of its founding with a new Delftware design.

KLM's mileage program is Flying Blue. Members can accumulate and spend miles on flights on Air France-KLM, and also on other SkyTeam carriers and with a variety of transportation, travel, and financial companies. Flying Blue members earn four membership levels, Ivory, Silver, Gold, and Platinum, determined by their accumulated SkyTeam miles. Members can also earn miles on flights operated by Kenya Airways, which is a Flying Blue partner.

KLM's venerable history hasn't protected the company for current economic turbulence. Air France-KLM recently announced it will lay off up to 2,000 employees on account of lower ticket sales and fewer cargo shipments. These cuts represent about 1 in 30 Air France-KLM workers. The company also plans to reduce its airline capacity by about 2 per cent in the summer of 2009, to make up for the $653 million loss in the fourth quarter of 2008. Airline management says it has not ruled out future job cuts or flight reductions as they seek to stabilize their finances and return the company to profitability.

An Australian airline watchdog group, the Australian Competition and Consumer Commission, announced in February 2009 that it is suing Air France-KLM over alleged price fixing. KLM denies the charges and plans to defend against the suit. Qantas and British Airways recently were fined $20 million and $5 million for similar charges.