Positive results in KLM‘s annual report 2015
Inspired by the motto ‘Change, Participate and Win’, KLM’s 35,000 people have worked hard to reignite the company in 2015. Looking back on the year, KLM see that the plan to win again has come to life. These and other results are highlighted in the annual report 2015. The announced cost savings put KLM in a position to invest in its customers once again. In 2015 we added new destinations to our network, we took possession of our first two Boeing 787 Dreamliners, and furnished our World Business Class with full-flat seats.
One of the main things KLM did in 2015 was to reconfirm the strategy of decreasing costs, investing in our future and transforming our organisation. As part of the AIR FRANCE KLM Group strategy Perform 2020, we took action throughout the year on all three fronts and began to see the first tangible results. Our costs are down, our productivity is up and our investments in customer and products are bearing fruit. KLM has continued to grow and show positive financial results. The report also details the year’s results according to the five pillars of KLM’s Flight Plan 2015: Customer and Product, Network and Fleet, Operations, People and Organisation and Finance.
KLM staff share in the company’s improved results
This year, all KLM staff with a Dutch contract will benefit from the company’s preliminary improvements in its operational results. The collective labour agreements from recent years have included arrangements to let the staff share in the profits. On 18 February, KLM published its 2015 annual results. With operational results of EUR 388 million, the profit-sharing scheme will now be paid out.
Furthermore, we did not give pay rises to management in 2016. This is in line with the business challenges that KLM now faces. The salaries fall far below the market average. Every year the KLM Supervisory Board evaluates KLM’s remuneration policy and the company’s actual results. As is the case for a large number of KLM staff, a system of variable income also applies for management. The KLM Supervisory Board sets this variable income based on the achievement of the company’s financial and non-financial targets. The size of this variable income is determined in part by KLM’s and AIR FRANCE KLM’s operational results (EBITDA).
(*) The annual report 2015 can be found by clicking on the image.