We are disappointed about the ruling and are studying it. The court does not specify in concrete terms how an experimental regulation can be applied. As a result, it is currently unclear when, how and in what way the ruling will be implemented and what it means for the number of aircraft movements at Schiphol.

KLM will continue to engage with other stakeholders in seeking the best way to reduce the number of people affected by aircraft noise. To this end, we have submitted a plan for cleaner, quieter, more fuel-efficient flight operations on 15 June. We are convinced that these measures will enable us to reduce noise impact and CO₂ emissions, while retaining our network. We would very much like to achieve this in cooperation with government and airport authorities, Air Traffic Control the Netherlands (LVNL) and other stakeholders, within the framework of the balanced approach required by the EU in the context of the noise reduction targets the ministry has set.

The airlines maintain that the Dutch government’s unilateral and sudden decision to reduce Schiphol’s capacity from 500,000 to 460,000 flight annual movements (with the ultimate goal of reducing flight movements to 440,000 by 2024) is incomprehensible. The airlines have already made multi-billion euros investments to meet near- and long-term goals in line with their own decarbonization trajectories as well as government policies, while the government’s justification hinges on operational restrictions with no consideration of alternative workable solutions to effect noise reduction.

In addition to negatively impacting the Dutch economy, the capacity reduction would significantly reduce travel options and connectivity for consumers. The airlines maintain that, along with violating national, European and international legislation, the decision is unnecessary, damaging and lacks proper substantiation, given the airline industry is already achieving significant results in relation to reducing CO₂ emissions and lowering noise levels.

For these reasons, KLM, KLM Cityhopper, Martinair, Transavia – all part of Air France-KLM Group – as well as Corendon, Delta Air Lines, easyJet and TUI are urging the courts to safeguard the future capacity of Schiphol Airport.

The KLM Group, which accounts for close to 60% of traffic at Schiphol, initiated this legal action in line with parent company Air France-KLM Group’s position on the matter. In addition, industry association BARIN has indicated its full support for this initiative. This initiative is also fully supported by industry associations Airlines for Europe (A4E) and the European Regions Airline Association (ERA) because the capacity reduction at Schiphol has major implications for the EU's single aviation market. In a further move, industry association IATA and a number of airlines will also be going to court to initiate proceedings against the Dutch government.

KLM was forced to take drastic measures to manage operations, for example restricting ticket sales to passengers departing from Schiphol and cancelling flights. The airline will continue pursuing these measures in the period ahead to improve network predictability. The essence was and remains: to ensure that every customer who books can fly.

KLM and Transavia carried a total of 9.5 million passengers in the third quarter. Cargo performed well despite having less belly capacity available, and Engineering & Maintenance (E&M) welcomed back customers. Taken together, these factors led to operating profits of €443 million in the third quarter of 2022, compared to €169 million in the same quarter of 2021. Revenues stood at €3.236 billion compared to €1.890 billion in 2021.

On the cost side, KLM faced sharp increases in the past quarter, due in part to the high oil price, inflation, supply chain shortages and costs associated with rebooking and compensating passengers affected by network interventions. Since the start of Schiphol’s security issues in April, which continued through September, direct costs alone have amounted to almost €70 million, compounded by the loss of revenue.

KLM endorses the need for additional measures, but at the same time it should be stressed that we find the mandatory reduction of passengers boarding locally highly detrimental and feel it should be a one-off, short-term solution. KLM finds it unacceptable that the airport’s users should have to structurally bear the burden of capacity problems at Schiphol.

Although KLM is against Schiphol’s measure in principle, KLM has cooperated with efforts to solve the problem, in the interests of passengers and safety at the airport. We have done so, among other things, by complying with Schiphol’s requests to scrap flights and voluntarily slow down ticket sales, spread flights across the day, extend connection times, etcetera. 

KLM feels it is important to give passengers clarity as swiftly as possible regarding the measures they can expect during the summer. In that light, it is better to take steps now, than to take ad hoc measures later. KLM will therefore comply with the request to reduce the number of passengers boarding locally, thereby helping to reduce the pressure on security at Schiphol during the peak period.

KLM will do its utmost to ensure that as many passengers as possible can enjoy holidays they have already booked. This can be achieved, among other things, by restricting the number of tickets made available to passengers boarding locally during the peak period. This measure would supplement KLM’s existing efforts, such as the spreading of flights. Based on the current information we have received from Schiphol, KLM will not have to cancel existing bookings on a major scale.

KLM holds Schiphol responsible for the financial impact of these measures.

In July 2020, one of the conditions that the Dutch government imposed on the provision of loans to KLM was that no variable remuneration would be paid to executive management during the term of the loans. Consequently, no short-term bonuses or long-term variable assets (shares) were allotted to the board or executives for 2021.

Another government condition is that KLM employees who earn three times the average income should make an employment conditions-based contribution of at least 20%. In 2021, the KLM Board’s remuneration was reduced by 47% (Elbers) and 34% (Swelheim and De Groot), which more than complied with this condition.

Mr Elbers’ pay ratio – i.e. his annual total remuneration compared to the average annual remuneration of a KLM employee – amounted to 8.1 in 2021, compared to 11.7 in 2019.

You can read the annual report here.

For the Netherlands, the connection with the rest of the world via Schiphol is of strategic importance. That is why, in 2020, the Dutch State supported KLM with a loan of EUR 1.0 billion and EUR 2.4 billion in guarantees on credit facilities, linked to major conditions. KLM is grateful to the Dutch government for its support.

In time, KLM will also need capital. For that purpose the Dutch State is in talks with Brussels, Air France-KLM, KLM and other stakeholders. As long as these discussions are ongoing, KLM will not comment on the progress of these talks.

This number was based on the premise that air traffic would begin to recover in 2021. However, KLM has repeatedly warned that this recovery might be delayed, which means a downgrading of the scenario and consequently the loss of more jobs. The current reality is that the recovery of long-haul traffic will be delayed longer than anticipated, primarily due to existing and new international measures and travel restrictions. This means KLM will have to shed a further 800-1,000 jobs, including 500 FTEs in the Cabin domain, 100 in the Cockpit domain, and 200 to 400 in the Ground domain. The total number of jobs KLM has then reduced will be close to 6,000.

Pieter Elbers, CEO KLM: “In July 2020, we announced that 5,000 of our colleagues would have to leave KLM, after which we engaged with intensive consultation and cooperation with all social partners. Various instruments were made available as part of a social plan. These adjustments were very painful, but successful. I have every faith we will resolve these new challenges together once more.

The further downsizing of our organisation does not yet encompass the latest measures announced by the Dutch government in the past 48 hours. These new measures are, however, in line with the restrictions and dynamics we have had to contend with since the start of the pandemic. Even if our crewmembers are exempt from the new regulations, the further loss of jobs will regrettably be inevitable. The impact of the latest measures will become evident in due course.”

The Dutch Government has made its loan package contingent on certain conditions, one being that all KLM employees must agree to surrender certain employment conditions for the duration of the loan (expected until 2025). KLM has spent the past few months hammering out the details of this austerity programme with the trade unions for cockpit, ground and cabin personnel, in line with the required structure and percentages.

The outcomes of these negotiations have been formalised in outline collective labour agreements and incorporated as such into the restructuring plan that KLM submitted to the Dutch Government on 1 October. The outline agreements define the austerity measures that will apply until early 2022 (for cockpit crews) and late 2022 (for ground and cabin personnel). It was especially important to specify the contribution that all KLM employees would be making towards the airline’s cost-reduction efforts over the entire loan period.

To meet this demand without having to re-enter negotiations, a “commitment clause” was inserted into the agreements between KLM and the trade unions. Unions CNV, De Unie, NVLT, VNC and VKP signed the clause on 31 October, with FNV Luchtvaart and FNV Cabine doing so on 2 November.

Today, 3 November, the Dutch Airline Pilots Association VNV also signed the commitment clause. KLM and the eight trade unions have therefore satisfied a key requirement, clearing the way for the Minister of Finance to assess whether the airline now meets the Dutch government’s demands.

The government has set requirements for the granting of the aforementioned loan package. An important requirement in this respect is that all KLM employees must make a labour contribution during the term of the loan (expected until 2025). In recent months intensive negotiations have taken place with the trade unions in the three collective labour agreement domains (Cockpit, Ground and Cabin) about the fulfilment of the employment condition contribution of KLM employees, in accordance with the percentages and structure required by the government.

The results of these negotiations have been laid down in 'outline collective labour agreement agreements' and are included as such in the restructuring plan that KLM submitted on 1 October. These outline agreements give concrete form to this contribution until the beginning of 2022 (Cockpit) and the end of 2022 (Ground and Cabin).

In October, KLM and the trade unions worked on the main lines of these agreements in detailed agreements. At the same time, on behalf of the government, the Minister of Finance, with the help of a consultancy firm, is assessing the entire submitted by KLM restructuring plan. This evaluation should be completed by the end of October. Specifically in the area of employment conditions, the Minister emphasised to KLM that it should be more explicitly agreed and laid down that the contribution of all KLM employees should apply for the full duration of the loans.

In order to meet this requirement, without repeating the negotiations altogether, there is a 'commitment clause' which will be included in the agreements between KLM and the trade unions. In this clause, all unions must each commit themselves to continue to make the labour conditions contribution with all KLM employees in accordance with the requirement of the Ministry of Finance (whereby the exact details are up to KLM and the unions).

The management of KLM yesterday made an urgent appeal to the unions to agree to this. Today five trade unions CNV, De Unie, NVLT, VNC and VKP signed this clause. FNV (Cabin and Ground) is still considering the matter. The pilots' union VNV has not signed this clause. This means that KLM does not meet the requirements set by the Minister. This outcome was communicated to the Minister this afternoon.

The basic principle of the restructuring plan is that KLM’s existing business model is still valid and valuable, but that far-reaching, structural initiatives are required to ensure KLM’s future success. Owing to the effects of the corona pandemic, KLM is preparing for an extended period during which fewer flights will be operated. The organisation will become smaller and less costly, as well as more sustainable, economical and efficient.

As KLM plays such an important economic and societal role in the Netherlands, the government has offered the airline a loan package, to which it has attached certain conditions. One condition is that KLM staff should contribute to KLM’s restructuring by accepting reduced employment conditions, amounting to income-dependent, graduated cutbacks of up to 20%. These reduced conditions will apply for the duration of the loan period.

KLM has now reached agreement with all unions for ground, cockpit and cabin staff on key principles of this plan for the period through 2022. This includes the unions VNC and FNV Cabine in the cabin domain and the unions FNV Luchtvaart, CNV, De Unie, VKP and NVLT in the ground domain, as well as the Dutch Airline Pilots Association VNV in the cockpit domain.

One of the other conditions imposed by the government is a 15% reduction in controllable costs. The KLM Works Council has been asked to advise on the downsizing and further simplification of the KLM organisation. In addition, there are more than 70 initiatives that will mainly reduce external costs. Significant cost savings will be achieved by phasing out leased aircraft and deploying a more efficient fleet. KLM is also meeting with suppliers and chain partners to contribute to cost reduction.

In terms of labour costs, KLM has already achieved savings by shedding jobs. KLM has already downsized by way of various measures, including non-renewal of short-term contracts (1,500 jobs) and a voluntary resignation scheme (2,000 jobs). By the end of the year, KLM will employ around 4,500 fewer people than it did before the corona pandemic.

Regrettably, further cutbacks cannot be excluded in view of the magnitude and gravity of the crisis. KLM has also reached agreement on a social plan with trade unions for ground personnel and cabin crew. The existing collective labour agreement for cockpit crew already provides a social plan.

Furthermore, KLM will reopen a voluntary resignation scheme targeting specific divisions and departments in order to minimise involuntary dismissals.

The KLM Works Council has reviewed and evaluated 37 requests for advice. The restructuring plan is ambitious and pressure ran high leading up to 1 October. The constructive contribution of divisional staff representatives and the Works Council deserves high praise. The Works Council’s positive advice on restructuring plans was subject to the successful negotiation of a social plan.

The quantity of SAF will be blended with fossil fuel and is entirely certified according to the conventional specification for aviation fuel (ASTM), meeting the same quality and safety requirements. The blend will be supplied to Amsterdam Airport Schiphol and is being treated completely as a drop-in fuel using the existing conventional fuel infrastructure, pipeline, and storage and hydrant system. In this way, sustainable aviation fuel contributes to reducing CO2 emissions from flights taking off from Amsterdam through CO2 footprint reductions in the supply chain.

KLM only sources sustainable aviation fuels based on waste and residue feedstocks that significantly reduce the CO2 footprint and do not have a negative impact on food production or the environment. The sustainability of the chain is ensured through certification by the International Sustainability and Carbon Certification Plus (ISCC+) and the Roundtable on Sustainable Biomaterials (RSB).

This volume is additional to the existing supply from Los Angeles to bridge the period towards the opening of the SAF production plant which is to be built in Delfzijl, Netherlands in 2022. This plant which is being developed by support of KLM along with industry partners will supply 75,000 tonnes of sustainable aviation fuel a year to KLM.

Instant emission reduction with sustainable aviation fuel

Neste’s sustainable aviation fuel is produced from renewable waste and residue raw materials. Over the lifecycle including the impact of logistics, sustainable aviation fuel has up to 80% smaller carbon footprint compared to fossil jet fuel. It is fully compatible with the existing jet engine technology and fuel distribution infrastructure when blended with fossil jet fuel. In the US and Europe, the company’s renewable jet fuel annual capacity is currently 100,000 tons. With further production expansion on the way, Neste will have the capacity to produce over 1 million tonnes of renewable jet fuel globally by 2022.

Unique cooperation

Neste is joining KLM’s Corporate BioFuel Programme. The KLM Corporate BioFuel Programme enables companies and organisations to ensure that sustainable aviation fuel is used for all or a portion of their air travel. Participants pay a surcharge that covers the difference in price between sustainable aviation fuel and regular kerosene. In so doing, they set an example and actively contribute to make air transport more sustainable. In 2019, the KLM Corporate BioFuel Programme is partnered by ABN AMRO, Accenture, Arcadis BV, Arcadis NV, Amsterdam Municipality, Loyens & Loeff, Air Traffic Control the Netherlands (LVNL), Microsoft, the Ministry of Infrastructure and the Environment, Neste, the Royal Netherlands Aerospace Centre (NLR), PGGM, Schiphol Group, SHV Energy, Södra and TU Delft.

Fly Responsibly

“Fly Responsibly” embodies KLM’s commitment to creating a sustainable future for air transport. It incorporates all of KLM’s current and future efforts to improve the sustainability of its activities. True progress can only be achieved if the entire sector cooperates. With “Fly Responsibly”, KLM invites consumers to opt for CO2 compensation service CO2ZERO, while companies are invited to reduce carbon footprint of their business travel via the KLM Corporate BioFuel Programme. At flyresponsibly.klm.com you can read more about KLM's initiatives to make aviation more sustainable.

In December, KLM plans to roll-out a codeshare cooperation with Qantas Group airline JetStar Asia Airways and JetStar Airways*, connecting respectively in Singapore and Denpasar, providing a wide range of destinations in the South-eastern Asian region.

Beyond Amsterdam to Singapore flights, KLM will place their code to 9 destinations operated by JetStar Asia Airways: Da Nang – Vietnam, Ho Chi Minh City – Vietnam, Medan – Indonesia, Surabaya – Indonesia, Phnom Penh – Cambodia, Siem Reap – Cambodia, Penang – Malaysia, Phuket – Thailand, Yangon – Myanmar. Beyond Amsterdam to Denpasar flights, KLM will place their codeshare on 4 destinations in Australia operated by JetStar Airways: Adelaide, Melbourne, Perth and Sydney.

*) Subject to Governmental authorization/approval

Five Dutch companies Ahold Delhaize, ING, KLM, NS and Philips aim to further boost the AI ecosystem in the Netherlands by accelerating and promoting the development of AI technology and nurturing AI talent in the country. This effort will add educational capacity, foster the development of the AI community in the Netherlands and reiterate the position of the Netherlands as a competitive and relevant global AI hub.

Joint initiative

The goal of Kickstart AI, is to bridge the AI gap between the Netherlands and other countries, like the UK, the US and China, that have made notable progress in this area. In order to keep the country’s position as a pioneer and inventor of technologies, the Dutch government, companies, organizations and universities have ground to cover in terms of structural investments and availability of global AI talent. The five companies “kickstarting” AI are, for the first time, uniting forces in this kind of joint initiative and taking highly needed decisive action.

Improve daily lives

The five companies initiating Kickstart AI are calling for the critical expansion of local knowledge and talent in order to ethically implement AI that is focused not only on what is technically possible but also meeting the ethical and social standards the Dutch society may expect. Collaboration among these five companies, the government, industry and other tech providers will help address societal challenges, provide new opportunities for the youth and accelerate the introduction of AI in the Netherlands. For consumers, AI has untapped potential to help improve their daily lives by elevating their experience with personalized service, convenience and choices in many areas of life such as food, travel, health and finances.

Initiatives under Kickstart AI include:

1. AI superchallenges: Competitions aimed at raising the Netherlands’ global profile by mobilizing global AI talent to address societal challenges for example in the areas of health and mobility.
2. Joint appointments: Investing in private-public collaboration through joint appointments of academic staff, providing access for the next generation of AI talent to education, training and leading academics. First commitment is to create 5 joint appointments to academic institutions in the Netherlands by each of the frontrunner companies in Kickstart AI, adding up to 25 positions in total.
3. Dutch national course for AI: As part of a wider effort to increase understanding and adoption of AI in the Netherlands, Kickstart AI companies will not only promote the national course for AI among the general public and their own workforces, but also offer the course in English, therewith aiming to secure sign-ups from a total of 170,000 people in the Netherlands by the end of 2020.

Urgency

Introducing Kickstart AI at the World Summit AI today, Maarten de Rijke, Professor at the University of Amsterdam and Director of the Innovation Center for Artificial Intelligence, said: “The Netherlands has always been a technology pioneer, a frontrunner in AI development and innovation. The quality of our AI specialists is well-acknowledged worldwide. However, without a national AI strategy and swift action, the severe shortage of AI talent in our country remains one of the biggest roadblocks to realizing the full potential of AI talent and technology. The joint efforts between universities and companies, as part of Kickstart AI, underlines the urgency in accelerating AI education and talent retention and signals our commitment to collaboration and investments needed to accelerate AI innovation in the Netherlands.”

Game-changing potential

Ahold Delhaize, ING, KLM, NS and Philips are connected to the daily lives of millions of people through food, travel, health and finances. As organizations that are close to the lives of everyday Dutch society, they fully understand the game-changing potential for AI to improve everyday life in the Netherlands. This is why they have joined together in a call for action to their business and industry peers, to boost collaboration in creating a thriving AI ecosystem in the Netherlands for the benefit of end-consumers’ daily lives. The Strategic Action Plan AI (SAPAI) and the Netherlands’ AI Coalition, also announced this week, are complementary steps in the same direction and designed to collectively sustain the growth and competitiveness of the Dutch economy.

We regret this situation and will do our utmost to make our customers' journeys as pleasant as possible.

In addition, Microsoft and KLM intend to explore areas of cooperation that would further improve sustainability and reduce emissions associated with air travel. Our joint aim is to provide a blueprint that will engage other corporations to stimulate the demand for sustainable air travel solutions, and achieve ambitions to address their carbon footprint within their own supply chain.

Fly Responsibly

KLM and Microsoft’s partnership fits in perfectly with KLM’s Fly Responsibly initiative. Fly Responsibly shows KLM’s commitment to creating a more sustainable future for the airline industry. It includes everything KLM is doing now and in the future to improve the sustainability of its operations. However, only when the entire sector works together can we make real progress. As part of the Fly Responsibly campaign, KLM invites its customers to use its carbon compensation program and asks companies to compensate for their business travel by taking part in the KLM Corporate BioFuel Program.

In order to continue operating as many flights as possible despite the industrial actions, it will not be possible to carry hold baggage on European flights arriving or departing from Schiphol on Wednesday, 18 September 2019 between 12:45 hours and 17:00 hours (CET). We are also urging our passengers to limit the volume of their hand luggage as far as possible in case they are prevented from carrying it with them on the European flights due to space constraints.

In so doing, KLM hopes to limit the impact of the strike on its customers. A no-charge rebooking policy has been established for passengers who do not wish to travel without hold baggage.

The passengers affected will be approached directly by KLM and will be rebooked on alternative flights. We therefore advise our passengers to keep a close eye on the information published on the KLM Website and/or the KLM App.

KLM has regularly indicated that it is in favour of replacing short-haul flights with rail services, as long as trains fully match the speed, reliability and comfort that air travel offers passengers. The decision to reduce flight frequency from five to four flights a day on the Brussels-Schiphol route, in combination with the improved Air&Rail product aboard the Thalys, is a first step. KLM intends to gradually cut back the number of flights between Brussels and Schiphol. The Brussels-Schiphol route is used by passengers who catch connecting flights to intercontinental destinations at Amsterdam Airport Schiphol.

“Fly Responsibly” and slot restrictions

This step is part of KLM’s commitment to “Fly Responsibly”, which aims to create a sustainable future for air transport, but it also reflects our commitment to the sector plan Smart and Sustainable. Next to that, KLM is faced with slot restrictions at Schiphol. By replacing short-haul flights with rail services, scarce slots can be used for services to long-haul destinations. Rail services will maintain feeder traffic to Schiphol, while network quality improves thanks to the more varied range of available destinations.

Improvement of the Air&Rail product

Air&Rail is easy to book via KLM.com and travel agents. To ensure smoother connections with KLM flights, Thalys, NS, KLM and Schiphol are seeking to improve baggage handling and other services, and there will be a special Air&Rail check-in desk at Amsterdam Airport Schiphol.

About “Fly Responsibly”

“Fly Responsibly” embodies KLM’s commitment to creating a sustainable future for air transport. It incorporates all of KLM’s current and future efforts to improve the sustainability of its activities. But true progress can only be achieved if the entire sector cooperates. With “Fly Responsibly”, KLM invites consumers to opt for CO2 compensation services, while companies are invited to compensate for business travel via the KLM Corporate BioFuel Programme.

For more information on KLM and sustainability, please visit https://flyresponsibly.klm.com/nl_en#home

Passengers are advised to check the latest flight information via KLM.com or the KLM App and to change their travel plans if possible. If your flight has been cancelled, please do not come to the airport until you have been rebooked.

Passengers are advised to check the flight information at KLM.com or the KLM app. If their flight is cancelled, they should not come to the airport.

FNV Cabin Crew has notified KLM that 56% of its membership base voted against the agreement in principle.

Previously, the biggest trade union, VNC, which represents more than 70% of all cabin crew, did vote in favour of the new collective labour agreement. A limited majority of FNV Cabin Crew’s membership base, which represents around 15% of all cabin crew, has now voted against the agreement. FNV Cabin Crew has informed KLM that it will now discuss the outcome. KLM will do the same. KLM nonetheless hopes that FNV Cabin Crew will sign the collective labour agreement, thus concluding a particularly difficult period.

The agreement provides a firm foundation on which we can join hands in building a healthy future for KLM, which is good for staff as well as passengers.

We hope that FNV members will also embrace the plan, considering that the new agreement with the VNC has close similarities to the demands previously expressed by the FNV Cabine trade union.

In KLM's opinion, the proposal is balanced, offering advantages for everyone while at the same time requiring everyone to contribute. KLM expects this to conclude the long period of uncertainty for its cabin crew members and for KLM.

FNV Cabine
KLM has also shared the results of negotiations with the FNV Cabine trade union for cabin crew. KLM has urged FNV Cabine to call off the strike scheduled for coming Monday, allowing them to share the negotiated agreements with its members, so that FNV Cabine and the VNC can jointly formalise a collective labour agreement with KLM.

Under these circumstances, we believe the timing is right for the new management team to take over in order to ensure the continuity of the Group’s economic and financial recovery and the implementation of its new governance.  We would like to take this opportunity to both congratulate and thank our people for their clear-sighted and responsible approach to the Group’s recovery plan which could not have been launched otherwise and which will be vital to pursue.”

The Air France-KLM Board of Directors took note of these decisions and thanked Mr. Spinetta and Mr. van Wijk warmly for their accomplishments at the helm of the Group since it was first set up in 2004, and in particular since 2011.

The Board underlined “the importance of the merger between Air France and KLM in 2004, the first between two major airlines from different nations, and one which radically changed the air transport landscape by creating a European and global leader.  It also opened the way for the consolidation of the industry in Europe, so vital with the advent of a large single European market, which is now virtually complete.  The success of this merger, which has inspired others in both Europe and elsewhere, is based on an approach of open dialogue, mutual respect and fairness, thereby building trust between the employees of both companies. This success, which we owe to the commitment of Jean-Cyril Spinetta and Leo van Wijk, will enable the Air France-KLM Group to embark on a new phase in its integration.

The new governance, combined with the Transform 2015 recovery plan, will support the strategy aimed at ensuring the Air France-KLM Group continues to play a leading role in the consolidation of global air transport.”

Following the proposal of the Appointments Committee, Alexandre de Juniac will succeed Jean-Cyril Spinetta as Chairman and CEO of the Air France-KLM Group as from 1st July 2013, and Peter Hartman will succeed Leo Van Wijk as Vice Chairman of the Board at the same time.

The Air France Board of Directors, which met on the same day, appointed Frédéric Gagey to take over from Alexandre de Juniac as Chairman and CEO of Air France as of 1st July 2013.

In the current economic context, top priority must be given to the recovery and improvement of the performance of Air France and of KLM, which must call up all reflection and energy in order to better address these challenges. Consequently, the setting-up of a full-dedicated Air France-KLM holding, which was to be implemented at the beginning of 2012, has been put off to 2013.  

In these circumstances, Pierre-Henri Gourgeon has resigned from his duties as Chief Executive Officer of Air France and Air France-KLM. The Board of Directors has paid tribute to the action that he took with courage and to the numerous measures efficiently implemented within difficult conditions since he took up his duties on January 1, 2009.  

In order to address the situation, the principle of sole leadership is essential, both within Air France and the Air France-KLM group.  

Therefore, the Appointment Committee of Air France-KLM has put forward to the Board of Directors of Air France-KLM, which approved it, the candidacy of Alexandre de Juniac to the duties of Chairman and Chief Executive Officer of Air France; this appointment will be subject to the approval of the Board of Directors of Air France and will become effective after the opinion of the ethics committee (Commission de déontologie) provided by the law of January 29, 1993.  

Alexandre de Juniac, surrounded by an experienced and younger team including Alain Bassil, Frédéric Gagey, Bruno Matheu and Florence Parly, will submit to the boards of directors of Air France and of Air France-KLM the measures aiming at improving the performance of Air France, and will be responsible for following-up such measures over time.  

During the period prior to the setting-up of the Air France-KLM fully dedicated holding, Jean-Cyril Spinetta and Leo Van Wijk, who presided the setting up of the Air France-KLM group, will be in charge of its strategic coordination. Jean-Cyril Spinetta, Chairman of the Board of Directors of the Air France-KLM group, has been appointed as Chairman and Chief Executive Officer of the Air France-KLM group. He has suggested to the Board of Directors, who has accepted it, that Leo Van Wijk be appointed as Deputy Chief Executive Officer of the Air France-KLM group. Philippe Calavia will continue to be in charge of the financial management of the Air France-KLM group.