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Posted on 4:41 AM by Wanto and filed under
By Tom Martens

KLM-Royal Dutch Airlines is the national airline of the Netherlands with headquarters in Amstelveen and a main hub at Amsterdam Schiphol Airport, serving over 90 destinations. KLM-Royal Dutch offers both domestic and international flights and is a member of the SkyTeam alliance, the second largest airline alliance in the world.

For the past several years, KLM-Royal Dutch Airlines has been part of Air France-KLM, while it has also maintained an operating partnership with Northwest Airlines, based in Minneapolis, Minnesota, in the USA. The two-airline consortium operates a fleet of 607 aircraft that carry nearly 75 million passengers a year to 258 destinations. The Air France-KLM partnership recently obtained even more global reach by purchasing a 25 per cent stake in the Italian carrier Alitalia.

KLM-Royal Dutch is the world?s oldest airline and was founded in 1919. KLM-Royal Dutch operated its first flight in May 1920 from London to Amsterdam. The airline stopped operating during World War II. KLM-Royal Dutch Airlines has been accused of helping Nazi war criminals flee Germany after World War II, a charge the company denies.

Air France and KLM announced their plans to merge in 2003, marking the end of the oldest independent airline in the world. However, the merger did not impact KLM's long time partnership with United States based Northwest Airlines, as both companies joined the SkyTeam alliance in September 2004.

KLM gifts its long-haul first-class and business passengers with small Delftware, blue-and-white porcelain reproductions of old Dutch canal houses. The houses are filled with Dutch liquor. This practice started in 1952. There are now 88 Delftware houses as of 2008 (the airline?s age that year). A new Delftware house is added each year on October 7, the anniversary of the airline?s founding.

KLM's mileage program is Flying Blue. Members can accumulate and spend miles on flights on Air France-KLM, and also on other SkyTeam carriers and with a variety of transportation, travel, and financial companies. Flying Blue members earn four membership levels, Ivory, Silver, Gold, and Platinum, determined by their accumulated SkyTeam miles. Members can also earn miles on flights operated by Kenya Airways, which is a Flying Blue partner.

The venerable history of KLM-Royal Dutch Airlines has not shielded it from the current year's economic turbulence. On account of declining ticket sales and lower cargo traffic, Air France-KLM announced recently that will lay off up to 2,000 workers. These job cuts represent about 3 per cent of the total workforce. The company further plans to reduce its airline capacity by about 2 per cent in the summer of 2009, hoping to compensate for the $653 million loss it posted for the fourth quarter of 2008. Company management has said it has not ruled out even more future job reductions or flight terminations as the company seeks to stabilize its finances and return to profitability.

The Australian Competition and Consumer Commission, an airline watchdog group, announced in February 2009 that the group is suing KLM over allegations of price fixing. KLM denies the charges and plans to contest the lawsuit. Qantas and British Airways were recently fined $20 million and $5 million for similar allegations of price fixing.

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