|
KLM plans 2,000 job cuts
|
 |
March 20, 2000: 7:20 a.m. ET
Airline aims to save $220M in 2000 as competition, fuel spike dent earnings
|
LONDON (CNNfn) - KLM Royal Dutch Airlines announced plans Monday to cut 2,000 jobs as part of a cost-cutting plan to stem losses at Europe's fifth-largest carrier.
The company said the cuts were part of a package that would help save 500 million guilders ($220 million) this year, while a 5 percent cut in capacity for its 2000/2001 schedule would save a further 200 million guilders.
KLM and rivals such as British Airways (BAY) and Lufthansa (FLHA) have seen profits slashed by a combination of surging fuel prices, overcapacity on transatlantic routes and intense competition in the European market from the growing band of low-cost carriers such as Ryanair (RYA).
KLM, which leads the global Wings alliance with Northwest Airlines (NWAC: Research, Estimates) and Alitalia, had already dumped expansion plans for this year and said it would cut some money-losing routes. It also plans to reduce its fleet by seven aircraft.
The staff cuts amount to almost 6 percent of KLM's workforce. The airline also said it canceled plans to recruit an additional 700 workers.
KLM shares rose 1.5 percent to 20.30 euros at midday in Amsterdam. 
|
|
|
|
|
 |
|
