KLM Faces Potential Cutbacks in European Routes Amidst Schiphol Slot Constraints

In a recent development, KLM Royal Dutch Airlines may be compelled to trim its European route network by 17 daily flights for the 2024 summer season due to slot constraints at Amsterdam Schiphol airport. The airline’s CEO, Marjan Rintel, voiced concerns over the impact on KLM’s long-haul operations, heavily dependent on feeder flights.

Rintel highlighted the looming challenge as the Dutch government considers a plan to reduce Schiphol’s annual flight capacity from 500,000 to 440,000. KLM, along with industry representatives, is contesting this proposal, advocating for the use of newer aircraft and more efficient flight procedures to maintain its network while curbing environmental pollution.

The Dutch Cabinet awaits feedback from the European Commission on the plan’s alignment with EU noise and carbon emission mitigation standards before making a final decision. Despite opposition, legal attempts to thwart the plan have so far been unsuccessful.

In response to JetBlue Airways seeking retaliatory measures against KLM from the US government, Rintel emphasized the threat such demands pose to KLM’s international operations and partnerships. She stated that JetBlue’s concerns could be echoed by other airlines if slot reductions proceed without considering international agreements.

Simultaneously, KLM, easyJet, and the International Air Transport Association (IATA) have filed a petition against a 37% airport user fee increase by Schiphol. The Dutch Administrative High Court for Trade and Industry will review the case, following previous complaints rejected by the Dutch consumer authority.

In a separate development, global asset manager Apollo Global Management is set to invest up to EUR1.5 billion in an Air France-KLM operating affiliate, focusing on the Flying Blue loyalty program. In return, Air France-KLM commits to spending EUR100 million on sustainable aviation fuel over the next four years, with KLM expected to receive EUR400 million from the transaction. This financial infusion aims to fortify Air France-KLM’s balance sheet and enhance the growth potential of its frequent flyer program, marking the third such transaction between Apollo and Air France-KLM in the past 18 months.