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Government agreed on KLM restructuring plan


The Dutch Cabinet of ministers agrees with the restructuring plan drawn up by KLM in order to achieve a 15% reduction in costs in the coming years. This will enable the airline to obtain a total support package of EUR 3.4 billion that the government and banks have made available as loans. The ministers Wopke Hoekstra (Finance) and Cora van Nieuwenhuizen (Infrastructure) informed the House on Tuesday evening.

Earlier in the day the last Union had agreed to a wage restraint for the duration of the loans, in 2025. The VNV pilot trade union wanted to stick to the agreements made at the beginning of October with the KLM to pay for the duration of two years. A longer wage moderation was a hard demand from Hoekstra to make the second part of the support package available.

It’s about a pay cut up to 20 percent for the most earning KLM’s. The FNV continued to refuse, but eventually changed its mind. Seven other unions and the works council already agreed. According to the ministers, this fulfils all the conditions laid down by the government for the aid.

KLM can rely on financial support because of the importance of KLM for the International Network at Schiphol, the economy and employment, according to the Cabinet. Jeroen Kremers oversees the implementation of the agreements and the way the money is spent.

In addition to wage restraint, the Cabinet also wanted to reduce the number of night flights and further reduce CO2 emissions per passenger. This should be halved by 2030 compared to 2005.

Almost EUR 1 billion of the aid package had already been transferred. The remaining 2.4 billion will now also be released. KLM is in heavy weather because aviation has almost stopped due to the coronacrisis.

Written by: Patrick O'Brien

Patrick O'Brien is a student who is taking only the first steps in journalism. The main interest is events from the world of macroeconomics and finance.

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World, As Seen from the most beautiful islands: Ireland and Cyprus

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