Choosing Klm Royal Dutch Airlines

Table of Contents

Introduction 3

Choosing KLM Royal Dutch Airlines 3

Our Approach 3

Brief History 3

Marketing 4

Logistics 5

Products and services 5

Changes affecting customers 6

Development 6

Finance 8

Who has how much stake in KLM? 8

Merger and acquisition between KLM and Air-France and its impacts 8

Brief overview and analysis of KLM’s latest accounts 9

Conclusion 10

Bibliography 11

Introduction

More and more people are doing cross – country business nowadays as one of the consequences of globalization. Hence, they ought to travel abroad to expand their enterprise. Not only for business, visiting foreign countries on holiday has also become everyone’s desire. However, the ease of travelling grows swiftly because technology is supporting alongside. One of the technologies that undoubtedly support travelling up until now is transportation, such as airplanes. If there have not been airplanes, the growth of globalization would not be as significant as it is presently.

Choosing KLM Royal Dutch Airlines

KLM Royal Dutch Airlines or KLM as hereafter called, the flag carrier airline of the Netherlands, is one of many other airlines that caught our concern. What made us decided to shadow this airline company is the generation of innovations it did to exist steadily, making it one of the oldest surviving airline names in the world. Some of the innovations were established through partnership and social-media campaign marketing. One of which is the treats KLM gave to kids lately, Out-of-This-World screening of Disney’s “Planes” which we found on Youtube. In addition, we found that KLM keeps on maintaining extensive network in Asia and South America even though they are not Dutch colonies anymore. KLM is also doing well in resisting the force from Middle-East airlines, and remaining sustainable between the rivalry over many other European airlines and low budget airlines.

Our Approach

Although KLM has merged with Air France, we decided to focus on KLM itself. Nevertheless, KLM’s plan of actions is incorporating its partners. Among numerous aspects that exists within KLM as an airline company, we have chosen to focus on its financial system, logistic, and marketing. We started off by listing all aspects that are possible to be shadowed, and then dividing tasks based on each of our interest. After putting our information together from different sources, we pieced everything and looked at which parts we wanted to elaborate more on. Finally, we wrote a short conclusion after reviewing all the gathered data.

Brief History

The company KLM Royal Dutch Airlines was founded on October 7, 1919. KLM stands for KoninklijkeLuchtvaartMaatschapij, which literally means Royal Aviation Company. It is one of the oldest airline companies in the world. The first KLM plane was departed to Batavia (now Jakarta), Indonesia in 1924 which was Dutch colony at that time. Since its first acquirement of jet planes in 1960, the number of its passenger and cargo have been increasing rapidly. KLM is now able to carry + 22 millions passengers and + 650 millions kilos of cargo each year.

KLM has been establishing partnership with other airlines to offer its passengers more destinations and services. Since 1989, KLM has been collaborating with major US carrier, North West Airlines, even though it had to be in assimilation with Delta Airlines. Nonetheless, in 2004, KLM took a great step by merging with Air France, creating one of the biggest airlines in the world. They developed a new strategy plan named ‘Embark’ which is constructed around the five areas of Customers, Operations, People, Development and Finance and incorporates the three Group business sectors: Passenger, Cargo and Maintenance. Although they work closely together, KLM is still flying independently under its distinct brand.

Marketing

In the last few years we can see that many "low-cost" airlines, such as Ryanair and Easyjet are becoming popular for people who are taking short flights around Europe, United States