KLM Will Ground Boeing 747s Soon Due to Coronavirus

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Due to the impact of the new coronavirus, KLM will keep all Boeing 747 aircraft grounded after the winter season, which runs until March 26.

 

At sister company Air France, the superjumbo’s of the aircraft maker Airbus, the A380, will no longer fly. The measures are needed to mitigate the financial impact of the virus. The large boxes are usually expensive to use and would fly for a while.

Parent company Air France-KLM expects in the coming months a capacity that is 70 to 90 percent lower than average. The company has taken many additional measures that should generate savings of up to € 200 million this year.

Initially, a revision of the investment plan has resulted in savings of up to EUR 350 million. According to the company, the cost savings and other measures plus the less expenditure on fuel, among other things, offset about half of the drop in turnover.

Air France and KLM are discussing measures to be taken with their works councils. Last week, the group already concluded a revolving credit facility for a total amount of 1.1 billion euros. In total, the company has access to more than 6 billion euros in cash.

KLM is forced to cancel many of its flights due to the corona problems. Furthermore, trade unions are currently discussing the postponement of the payment of the profit-sharing for the previous year. Up to 2000 jobs will also be cut and working hours will be requested for KLM employees.

In an internal video message, Air France-KLM boss Ben Smith announced that he would cut his salary by a quarter. He has asked France and the Netherlands for support, among other things.

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