Dutch Airline KLM to Slash 2,500 Jobs
Oct. 04, 2001
AMSTERDAM, Netherlands (AP) _ KLM Royal Dutch Airlines said Thursday it will slash up to 2,500 jobs and cut passenger capacity an additional 10 percent in the aftermath of the Sept. 11 attacks in the United States.
``More far-reaching measures may have to follow in view of the uncertainty on further developments in the global airline industry,'' KLM said in a statement.
KLM estimated the attacks resulted in a loss in September of $46 million. It said it will reduce its work force by not renewing expiring contracts, but it did not say where the cuts would come.
The airline is seeking to trim the working hours of 12,000 employees and make a ``substantial'' pay cut to an unspecified number of others. The management and supervisory board members would take pay cuts of 15 percent.
The airline already reduced capacity by 5 percent shortly after the World Trade Center and Pentagon attacks. The additional 10 percent reduction will come into effect Oct. 28.
KLM said it will deploy smaller aircraft and reduce the frequency of flights to many destinations, including services to North America and the Middle East. In Europe, it will end the service to Malmo, Sweden, and cut back the frequency of flights to Paris, Milan, Madrid, Munich, Goteborg and Helsinki.
There will also be fewer flights to the Asia-Pacific region.
Air freight capacity will remain mostly at the same levels, it said.