KLM TO IMPLEMENT FIRST CAPACITY CUTBACKS IN OCTOBER

KLM intends to reduce capacity on various routes as soon as possible, but by October 1, 2001, at the latest. The cutbacks will primarily affect services to North America and the Middle East, and to a lesser extent services within Europe. The overall reduction in capacity will amount to around 5 percent (in ton kilometers). On North American routes the reduction will be in excess of 15 percent (in ton kilometers).

These capacity cutbacks are the first set of measures to be taken in response to diminishing passenger demand. They will remain in force until the start of the winter schedule on October 28, 2001. Later this month, KLM will announce how it intends to carry out further capacity cutbacks in the period after October 28.

Network adjustments

The proposed adjustments to the summer schedule, which is currently still in force, include a reduction in flight frequency to various U.S. destinations, including New York (JFK and Newark airports) and Los Angeles, as well as the suspension of all non-stop flights between Amsterdam and Atlanta.

In the Middle East, flight frequency to Tel Aviv, Dubai and other destinations will be reduced, and in Europe, frequency to London, Moscow and other cities will be trimmed. Smaller aircraft will also be deployed on various routes.

Our U.S. partner Northwest Airlines will also reduce capacity on North Atlantic routes, to destinations such as Detroit.

Further measures

Effective September 18, 2001, KLM implemented a company-wide recruitment stop. The airline also decided that fixed-period contracts would not be extended and that it would no longer hire staff from temping agencies. Other measures include a total stop on all but the most vital investments, a reassessment of all ICT projects, and the suspension of all external support, such as organizational consultants.