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KLM could split into two companies: report

24-Oct-2012 9:04 AM

KLM could reportedly split into two companies, intercontinental operations and European operation which would include subsidiary Cityhopper. As reported by Het Financieele Dagblad, KLM presented the proposal to the cabin crew union in a bid to kick-start protracted collective negotiations. The proposal, which follows joint parent Air France’s decision in Oct-2012 to split in to eight operating divisions, would lower European cabin crew salary costs and associated expenses such as overnight accommodation costs. No compulsory redundancies were expected under the proposal. KLM wants to reduce costs by EUR700 million (USD909 million) including a wage freeze to stem losses.