• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Aviation

KLM’s restructuring plan rejected by Dutch Government

5 years ago
in Aviation, highlights, Home, home-news, latest News, Travel
2 min read
0 0
0
KLM Airlines - norvanreports

KLM Airlines - norvanreports

68
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

KLM and unions are reportedly in emergency talks. This follows news on Friday that the Dutch government had rejected the airline’s restructuring plan.

The reason for the refusal seems to be what The Hague considers to be an insufficient commitment from KLM employees to freeze wages.

KLM premium economy getty images
The Dutch government on Friday rejected KLM’s restructuring plan. Photo: Getty Images
Billions of euros riding on the plan’s approval

According to Reuters, which in turn cited two sources from De Telegraaf, the government’s rejection of the plan was based on unions’ refusal to freeze wages through to 2025.

The Dutch government has made its national airline’s €3.4 billion ($4 billion) rescue package dependent on the restructuring plan, which was submitted on October 1st.

The plan includes cutting costs by 15 per cent. The company will also let go of 20 per cent of its workforce, which equals approximately 4,500 jobs this year. Furthermore, the airline has committed to reducing its carbon dioxide emissions by 50 per cent by 2030.

Meanwhile, it would seem this was not enough for The Hague, and it is back to negotiations.

When asked for a comment on the unfolding situation, a spokesperson for KLM confirmed to Simple Flying that the airline is indeed in talks with the unions.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

However, they also wished to highlight that the government’s official assessment of the plan is yet to be published.

KLM, Boeing 737, Airbus A330, Storage
KLM’s CEO says the state-guaranteed loans are needed to safeguard the future of the airline. Photo: Getty Images
Loan and guarantees of “crucial importance”

The news of the government’s reported rejection of KLM’s plan comes on the same day that Air France-KLM released its third-quarter results for the year.

As expected, it made for rather grim reading. KLM reported losses of €234 million ($273,5 million) for Q3. The carrier warns that the figures for Q4 could be even more discouraging, given the new set of lockdowns.

To safeguard the future of our airline and employment opportunities, the loan and loan guarantees offered by the Dutch government are of crucial importance, Pieter Elbers, KLM’s CEO, commented on the results and the continued grim outlook for aviation throughout the year.

Mr Elbers also said that without the aid of the government’s Temporary Emergency Scheme for Job Retention (NOW), the carrier’s losses would have reached €500 million ($585 million).

The second wave of infections across Europe is pushing KLM’s capacity even lower for Q4. Photo: Getty Images
Second wave may cause further rightsizing

KLM also expressed that given the recent developments and the second wave of the pandemic, and the “somber outlook” ahead, further rightsizing of the organization will be considered.

However, it did not specify whether or not this would entail more job cuts or potential fleet reductions.

The SkyTeam Alliance member also said its operating capacity would be down by around 55 per cent for the fourth quarter compared to 2019. This is even lower than that of the third quarter, which landed at around 50 per cent. 

Its partner airline, Air France, is planning for only 35 per cent of capacity, but KLM is boosted somewhat by a strong cargo demand.

Source: simpleflying
Via: norvanreports
Tags: Air Francecovid-19 lokdownsDutch GovernmentKLM Airlines
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.