KLM CEO Criticizes 'Unfair' Competition from China: Calls for EU Action
KLM CEO Marjan Rintel has called on Brussels to implement financial measures to allow European airlines to better compete with Chinese carriers. Speaking on WNL Op Zondag, Rintel highlighted the advantage Chinese airlines have by being able to fly over Russian airspace, a privilege that European airlines, including KLM, do not have. This results in longer flight times and increased fuel consumption on intercontinental routes, sometimes adding two to four hours to flights.
Rintel urged Brussels to take action, suggesting that Europe should find ways to address this competitive imbalance, either through pricing mechanisms or other means.
Cost-Cutting Measures and Challenges for KLM
Facing rising operational costs, KLM is preparing a major cost-cutting plan aimed at increasing profits by €450 million annually. The airline, which celebrates its 105th anniversary this week, is grappling with a tight labor market and rising wage costs, particularly in contrast to Air France, which merged with KLM in 2004.
Planned measures include making staff work more efficiently, adjusting flight schedules, and potentially outsourcing aircraft maintenance due to a shortage of pilots and technicians. Despite these challenges, Rintel assured that staff would not necessarily be required to work harder, and discussions with labor unions are ongoing to find the best solutions.
KLM is also working to return to pre-pandemic flight levels, although the airline is not yet operating at full capacity. Despite hiring new staff and accelerating training programs, shortages remain a challenge.
KLM Will Not Become a Budget Airline
In response to concerns about KLM turning into a budget airline, Rintel reassured that while passengers will now have to pay for food and drinks on European flights, the airline’s overall service remains intact. She noted that customers have expressed dissatisfaction with the current onboard food options and would prefer to pay for more variety. Critics, however, have pointed out that this change blurs the line between KLM and budget carriers like Transavia and Ryanair, but Rintel emphasized that KLM’s strong service reputation remains a key draw for passengers.