To benefit from the loan package, Dutch Government now requires KLM to reduce costs by 30 percent

KLM would like to emphasise once again that it is very grateful to the government for the support received in 2020. KLM sees it as a duty to repay the loan package granted as quickly as possible. KLM has withdrawn a total of 942 million euros from the package, of which 311 million euros has now been repaid. When providing the aid in 2020, KLM has committed itself to the conditions, which still stand.

One of the conditions that the Dutch government has set for the loan package is that KLM will reduce its controllable costs by 15%. KLM more than met this requirement and even managed to reduce 30% of its controllable costs in the past year. This rapid cost reduction, in combination with the now greatly reduced NOW scheme, has made KLM one of the best-performing airlines in Europe for the past three quarters.

Part of this is the employment condition contribution made by almost all KLM employees. Depending on income group, the staff makes up to 20%. Agreements have been made about this with the trade unions. The stipulated employment conditions contribution has been met in all collective labour agreements. The collective labour agreement for flight crews ran until March 1, and the collective labour agreement for Ground and Cabin runs until the end of 2022. The new collective labour agreement for cockpit staff has been delayed due to the ILO report that is critical of the conditions imposed by the State. The collective labour agreement for the pilots will be discussed further in the coming weeks.

KLM has also continued to implement the sustainability agenda in line with the conditions of the government. Constructive discussions have been held about this with the Ministry of Infrastructure and Water Management in recent months and an implementation plan has been drawn up that responds to the government’s wish to make KLM’s efforts in this area more manageable. KLM is on track when it comes to sustainability and flies with every flight on a small percentage of sustainable fuel. KLM has also committed itself to the Science Based Targets initiative that helps companies to align with the Paris climate agreement.

KLM is an international company with a total of approximately 25,000 employees, consisting of personnel of different nationalities. A small group (2.9% of the total workforce) of flight personnel lives abroad and uses KLM’s homework scheme. KLM, VNV, FNV Cabine and VNC recognise that action must always be taken in accordance with existing laws and regulations. KLM has set up a working group with the three trade unions involved. It is important to quickly find a solution that is also supported by the unions.

Amstelveen, 29 May 2022

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