48 Scope for renewal Social developments in The Netherlands and the dynamism of the aviation industry influence relationships within KLM. On the one hand there is a need for security and assurance and on the other there is a need for flexibility and tailor-made service. This e¤ect is being reinforced by initiatives taken by the Dutch government in various areas to economize on social welfare plans, to pass on costs to employers or employees and to privatize the provision of certain services. This naturally left a mark on the CLA negotiations that were completed during the year. An important objective of the new CLAs was to balance the uncertainties for both the employer and the employees with the need for flexibility and cost control. To achieve its corporate objectives, KLM must be able to operate competitively. The new CLAs o¤er scope for smarter, simpler and more eªcient ways of working and planning. More so than in the past, sta¤ can ‘take the space they need’ to steer their own careers. In The Netherlands, KLM has never addressed so many issues at one time. This makes the KLM CLAs unique. But more important, the agreements create the conditions necessary to anticipate change in a dynamic environment. Four-sided support for employability The pillars of the new agreements are employability and cost control. KLM has formulated four themes for employability: flexibility, mobility, health and participation. Flexibility will enable KLM to balance work- loads and manpower. Mobility is the sta¤’s ability to carry out all manner of work and a variety of functions adequately, both within KLM or, if an employee’s or KLM’s limitations after a careful reintegration process prevent this, outside the Group. Health, of course, is a basic condition for current and future productivity, flexibility and mobility. Participation is the degree to which employees can continue to work during the various stages of their lives or the degree to which KLM can motivate them to do so. Increasing productivity, avoiding excessive workloads Higher productivity through eªciency gains has consequences for the sta¤. To reduce their workload, KLM will increase productivity chiefly Employees The Social Perspective
Transcript
48
Scope for renewal
Social developments in The Netherlands and the dynamism of the aviation industry influence relationships within KLM. On the one hand there is a need for security and assurance and on the other there is a need for flexibility and tailor-made service. This e¤ect is being reinforced by initiatives taken by the Dutch government in various areas to economize on social welfare plans, to pass on costs to employers or employees and to privatize the provision of certain services. This naturally left a mark on the CLA negotiations that were completed during the year.
An important objective of the new CLAs was to balance the uncertainties for both the employer and the employees with the need for flexibility and cost control. To achieve its corporate objectives, KLM must be able to operate competitively. The new CLAs o¤er scope for smarter, simpler and more eªcient ways of working and planning. More so than in the past, sta¤ can ‘take the space they need’ to steer their own careers. In The Netherlands, KLM has never addressed so many issues at one time. This makes the KLM CLAs unique. But more important, the agreements create the conditions necessary to anticipate change in a dynamic environment.
Four-sided support for employability
The pillars of the new agreements are employability and cost control. KLM has formulated four themes for employability: flexibility, mobility, health and participation. Flexibility will enable KLM to balance work-loads and manpower. Mobility is the sta¤’s ability to carry out all manner of work and a variety of functions adequately, both within KLM or, if an employee’s or KLM’s limitations after a careful reintegration process prevent this, outside the Group. Health, of course, is a basic condition for current and future productivity, flexibility and mobility. Participation is the degree to which employees can continue to work during the various stages of their lives or the degree to which KLM can motivate them to do so.
Higher productivity through eªciency gains has consequences for the sta¤. To reduce their workload, KLM will increase productivity chiefly
EmployeesThe Social Perspective
learn (verb; learns, learning
learned) 1 to gain knowledge:
2 to gain by experience: 3 to
study: 4 to master a skill.
organization (n.) 1 the act of
organizing or being organized:
2 the formation of a structured
concern: 3 a structured body,
association, etc.
The KLM workforce has a wealth of knowledge. The KLM Academy was founded to stimulate the exchange of valuable expertise between managers and specialists within and between divisions. The KLM Academy o¤ers a series of programs that promote management and organizational development in many ways, with plenty of room for discussion and experimentation. Options include management development programs, master classes, coaching, and wide range of relevant information. The academy’s port folio is continually updated and extended, aligning it with broader corporate objectives.
Turkana | KenyaSusan goes to the Kalobeyei boarding school. Her parents are nomads and she went with them when they traveled from place to place. Often, however, there were no schools in those places. Now she no longer travels with her parents but she can go to school every day. Susan has chosen to learn and wants to become a doctor.
49
by working smarter, for example by having fewer people during o¤-peak hours and by building in flexibility for peak hours. The practicalities of such smart solutions are tested in rostering projects. Two trial phases with new rosters at Engineering & Maintenance, Cargo and elsewhere proved successful. In consequence, a far-reaching rostering project has been set up.
Employee participation
As in previous years, in 2005 | 2006 the Works Council dealt with many business cases arising from the implementation of structural measures and from the further coordination and harmonization of KLM and Air France. The Works Council also advised KLM on various requests for recommendations, such as fleet renewal and the implementation of the Joint Cargo Management Committee. A number of Works Council committees are occupied with such subjects as sta¤ security, health, well-being and the environment, finances, health insurance system and HR aspects. The new health insurance and the reintegration policy are examples of major issues that have been discussed. Furthermore, the Works Council organizes workshops where coadministration colleagues have the opportunity to exchange their experience and knowledge every trimester.
At Air France-KLM level, sta¤ interests will be promoted by the European Works Council. After nine months’ negotiation, this consultative body’s regulations were adopted in mid-February 2006. By the end of March the European Works Council has been installed. The European Works Council focuses on subjects concerning the cooperation of KLM and Air France, such as the fair division of employment.
External consultation
Based on the common interest of employment, KLM and the unions have had a good and constructive relationship over the years. KLM has incorporated a new labor relation theme ‘From Industrial Relations to Human Relations’. As a consequence the collective bargaining in the CLA 2005 concentrated on strengthening trust, managing by commitment and reducing complexity. Besides these leading principles, the pillars under the agreement were cost control and optimal employability of all members of sta¤.
As a result of social developments in The Netherlands and changes in Dutch labor law, the new CLAs include collective agreements on
Employees
50
pensions, life-course plans, medical insurance and salary payment during the second year of sickness. The new CLAs were agreed for the period of 27 months (2005-2007).
Extra consideration for participation of all employees
Regulatory changes and an aging population are placing pressure on the productivity targets. In the course of a long employment relationship, sta¤ proficiency can decline. But the social safety net has changed and the retirement age is rising. To ensure longer-term productivity of all its employees, KLM pays systematic attention to their sustainable participation. A quick scan of all risk analyses has identified the health and safety risks present in several departments. A top four has been compiled that will be tackled first. They are physical stress, communication of safe working practices, undesirable conduct and calamities.
KLM Academy making good progress
KLM helps its sta¤ plan their personal and professional development and facilitates follow-up projects at various levels. The KLM Academy was established to improve the quality of KLM’s organizational and management potential. During the fiscal year, several workshops were organized at which managers with proven skills shared their knowledge with others. The program covered such issues as leadership, bridging cultural and behavioral di¤erences, motivation management, change management, innovation management, strategic cost management and talent development.
The KLM Evening School has been renamed the Dutch Aviation College – business training. Its objective remains to support sta¤ in their personal development. KLM reimburses the costs when a course is successfully completed. The management development program for KLM’s high potentials has been extended to include a new module. Under the title Focus on your Future, the participants take a multiyear program of workshops, coaching interviews, mentoring and a closing workshop based on their own input.
E¤ective support through e-applications
In the field of e-services, KLM works with two concepts: Shared Services and Employee Self-service. An example of Shared Services is the HR infoline. It was introduced on the publication of the sixth CLA newsletter in December 2005 because it was thought that the options
The Social Perspective
51
in the life-course, pension and medical insurance plans would elicit many questions. The infoline can be contacted on a special telephone number and by email. Experience with the HR infoline has been positive. Initially, some 250 questions were received every week before the number stabilized at around 100 per week.
Employee self-service, the program of e-applications available on the intranet site www.myKLM.org, is developing very gradually. Since 2004, myKLM.org has also provided sta¤ with access from their homes to work-related information and support functions. ‘Interapy’ provides intranet-based support from a psychologist. Assistance with career questions and career development is provided in the form of the Virtual Mobility Center, the Career Scan and the Career Guide. A great deal of e-recruitment, too, is conducted over the web but it still requires a lot of personal input. A new system must make it easier to recruit personnel over the Internet.
Employees
KLM engages in a wide array of activities. Each activity demands specific expertise and competence. But all KLM sta¤ have one thing in common: together they determine the quality and reliability of KLM as seen by the customer - directly (in the cabin or cockpit) or indirectly (on the ramp or in the hangar).
52
Absenteeism at KLM
Absenteeism at KLM in % (2005: 5.6%)
Sta¤ diversity 2005 | 2006 in The Netherlands
10
999
888
777
666
555
444
333
222
111
000
100
909090
808080
707070
606060
505050
404040
303030
202020
101010
000
35,000
31,50031,50031,500
28,00028,00028,000
24,50024,50024,500
21,00021,00021,000
17,50017,50017,500
14,00014,00014,000
10,50010,50010,500
7,0007,0007,000
3,5003,5003,500
000
01
02
02
03
03
04
04
05
05
06
Employees in The Netherlands(2005 | 2006: 22,441)
Employees abroad(2005 | 2006: 2,790)
**Average full-time equivalents, including temporary staff.
KLM Company employees in The Netherlands
and abroad*
KLM Group employees
01
02
02
03
03
04
04
05
05
06
KLM Group average full-time equivalents, including temporary staff in The Netherlands and abroad(2005 | 2006: 31,778)
35,000
31,50031,50031,500
28,00028,00028,000
24,50024,50024,500
21,00021,00021,000
17,50017,50017,500
14,00014,00014,000
10,50010,50010,500
7,0007,0007,000
3,5003,5003,500
000
1 2 3
The Social Perspective
111Age structure in %Age structure in %Age structure in %>50: 15%30-50: 73%<30: 12%
33Women in management Women in management Women in management positionspositionspositionsWomen in The Netherlands: 20%Men in The Nederlands: 80%
444Part-time: 36%Full-time: 64%
401 02 03 04 05
53
Working on the fundamentals: health
The rate of absenteeism feel further during the fiscal year: from 6.1% in 2004 | 2005 to 5.6% in 2005 | 2006. The success of targeted investments to reduce absenteeism and prevent incapacity for work has persuaded KLM to focus more attention on preventive care. KLM Arbo Services is now known as KLM Health Services. The change in name highlights that the service is about more than just working conditions. Under the motto, ‘… and a healthy journey home!’ KLM Health Services will position itself as a work, travel and health organization.
Another proactive instrument KLM will introduce to keep employees healthy is a health scan. This revolutionary tool provided through www.myKLM.org will give employees insight into their current state of health. The scan will also provide advice on what employees themselves can do to maintain or improve their health.
Employees happy with Air France
KLM won the employer’s award for the organization with the highest sta¤ satisfaction in 2005. The findings show that 98% of the sta¤ are positive about the cooperation with Air France. Sta¤ are convinced that the airline combination achieves more than KLM would do by itself. They are proud, motivated and confident about the shared future and are eager to make it work.
KLM’s sta¤ satisfaction surveys are conducted by an external agency that compiles a benchmark using survey results from several companies. This provides the sta¤ with an insight into their position in comparison with sta¤ elsewhere. KLM came out of this benchmarking exercise as the best employer.
To monitor sta¤ satisfaction with the alliance with Air France, KLM has developed a questionnaire that is issued once every quarter. The group of respondents always includes sta¤ who actually work with French colleagues. Where joint teams of KLM and Air France sta¤ encounter problems, training courses are organized. A dedicated form of mediation has been developed that is o¤ered under the name Cultural Bridging.
Structural measures program nearing completion
Fiscal 2005 | 2006 was the last year of a three-year program to save costs by mean of a package of structural measures. The program included the loss of 4,500 jobs. For some of the sta¤ who became redundant,
Employees
54
KLM set up the ‘Work to Work Center’ to help them during a period of one year find alternative employment. The merger between KLM and Air France and economic growth increased the number of positions but in general this did not provide a solution for the employees who lost their jobs owing to the aforementioned program. The growth occurred in positions that make a direct contribution to the KLM product whereas the jobs that were lost were mainly clerical and back oªce positions. Participants in the Work to Work project were given priority in the vacancy policy.
The Social Perspective
55
Social commitment in day-to-day operations
Together with Schiphol, KLM is participating in the Schiphol Summer School to help prevent youth unemployment by providing underprivileged young people with training and then work at one of the two employers. KLM has signed a covenant with Amsterdam Airport Regional Education Center to provide traineeships for students with a technical education. Students that complete the course with an Aircraft Maintenance License are o¤ered a three-year employment contract.
KLM works with the Reading and Writing Foundation and promotes the opportunities, such as literacy courses, it o¤ers to sta¤ who have reading and writing diªculties.
In 2006 KLM was named as the favorite employer in The Netherlands among students from ethnic minorities. This was the outcome of the largest survey of labor market expectations, trends and favorite employers, the Student Image Survey conducted by Intermediair Ebbinge. KLM considers this to be an incentive because although it employs 71 di¤erent nationalities the diversity in management positions lags behind that in non-management positions.
KLM for children
KLM AirCares is a charity sponsorship program that assists less fortunate children. KLM selects a di¤erent project every quarter. The program consists of the provision of KLM’s resources and its communication network to help aid organizations reach the largest possible audience for a period of three months. On January 1, 2006, KLM AirCares extended its activities by setting up a promotional and fund-raising activity for the organizations. In February, visitors to Schiphol could record a personal video message in a special AirCares
Social Responsibility
56
booth and email it to their friends and family. Through this activity, KLM AirCares raised money for the Israeli organization, Save a Child’s Heart.
On some projects, AirCares works with Wings of Support and Pilots Without Borders to carry out these projects. Wings of Support is a voluntary charity organization set up by KLM’s sta¤, and Pilots Without Borders is an organization of pilots from various airlines who use their professional know-how and skills to provide logistics assistance.
Working together on a knowledge advantage
As an employer, KLM actively works on matching education to the needs of industry. In January 2006, for example, KLM and Breda University of Applied Sciences signed an agreement regarding knowledge development and innovation in Aviation Management and Imagineering. KLM expects these to become very important issues for the future competitiveness of the aviation industry and Breda University of Applied Sciences will provide an opportunity to develop new curricula.
Assurances on a future in technology
Maintenance and revision are playing an increasingly important role in the use of aircraft. Air France-KLM therefore sponsors the chair in Maintenance, Repair and Overhaul (MRO) at the Aerospace Engineering Faculty of Delft University. The teaching and research mandate concentrates on the marketing aspects of MRO. Studies will be made, for example, of whether maintenance can be used as a quality label to improve an airline’s profitability. KLM Engineering & Maintenance is playing a role in keeping MRO work in The Netherlands. To encourage secondary vocational pupils to enter technical professions, KLM Engineering & Maintenance took part in the Future Expedition project, an initiative of Regional TechnoCentrum Amsterdam.
The Social Perspective
smart (adj.) 1 sharp, quick,
keen: 2 bright, quick-witted,
intelligent, clever, astute: 3 neat,
pleasant, clean: 4 fashionable,
stylish, chic.
leadership (n.) 1 ability to show the
way: 2 power, authority.
Working smart means working di¤erently, better exploiting existing opportunities and creating new ones. You have to take bold steps towards a new horizon. Motivated sta¤ are a key factor in this process. Since the start of the merger, KLM has gauged sta¤ satisfaction regarding cooperation with Air France in order to take concrete measures. These frequent surveys indicate that KLM sta¤ are proud and motivated, that they have faith in our common future, and that they are keen to contribute to this future.
Millau | France The viaduct at Millau, crossing the valley of the River Tarn, is the highest and longest cable-stayed, vehicular bridge in the world. It is also a classic example of European cooperation. Designed by French engineer Michel Virlogeux in collaboration with architects at British-based Foster & Partners, the bridge took shape on Dutch-French drawing boards. This innovative viaduct is designed to with stand the strong winds and extreme temperature shifts that are so characteristic of this region. This technical (and political) marvel is the last link of La Méridienne, the shortest route between Paris and Barcelona. And Millau is finally relieved of its annual holiday traªc jams.
57
Shareholder Structure
KLM’s shareholder structure is outlined KLM’s shareholder structure is outlined KLM’s shareholder structure is outlined KLM’s shareholder structure is outlined
below:below:below:below:
– all KLM priority shares and a – all KLM priority shares and a – all KLM priority shares and a – all KLM priority shares and a
proportion of the common shares, proportion of the common shares, proportion of the common shares, proportion of the common shares,
together representing 49% of the voting together representing 49% of the voting together representing 49% of the voting together representing 49% of the voting
rights in KLM;rights in KLM;rights in KLM;rights in KLM;
– the depositary receipts issued on – the depositary receipts issued on – the depositary receipts issued on – the depositary receipts issued on
the common KLM shares in excess of the common KLM shares in excess of the common KLM shares in excess of the common KLM shares in excess of
the 49% of the nominal share capital the 49% of the nominal share capital the 49% of the nominal share capital the 49% of the nominal share capital
and the voting rights in KLM. The and the voting rights in KLM. The and the voting rights in KLM. The and the voting rights in KLM. The
depositary receipts carry the beneficial depositary receipts carry the beneficial depositary receipts carry the beneficial depositary receipts carry the beneficial
ownership but not the voting rights of ownership but not the voting rights of ownership but not the voting rights of ownership but not the voting rights of
the underlying common KLM stock;the underlying common KLM stock;the underlying common KLM stock;the underlying common KLM stock;
– the depositary receipts issued on the – the depositary receipts issued on the – the depositary receipts issued on the – the depositary receipts issued on the
A-cumulative preference shares, which A-cumulative preference shares, which A-cumulative preference shares, which A-cumulative preference shares, which
carry the beneficial ownership but not carry the beneficial ownership but not carry the beneficial ownership but not carry the beneficial ownership but not
the voting rights of the underlying A-the voting rights of the underlying A-the voting rights of the underlying A-the voting rights of the underlying A-
– the depositary receipts issued on the – the depositary receipts issued on the – the depositary receipts issued on the – the depositary receipts issued on the
C-cumulative preference shares, which C-cumulative preference shares, which C-cumulative preference shares, which C-cumulative preference shares, which
carry the beneficial ownership but not carry the beneficial ownership but not carry the beneficial ownership but not carry the beneficial ownership but not
the voting rights of the underlying C-the voting rights of the underlying C-the voting rights of the underlying C-the voting rights of the underlying C-
(SAK I) has 31.9% of the voting rights (SAK I) has 31.9% of the voting rights (SAK I) has 31.9% of the voting rights (SAK I) has 31.9% of the voting rights
in klm on the basis of common shares in klm on the basis of common shares in klm on the basis of common shares in klm on the basis of common shares
and A-cumulative preference shares. and A-cumulative preference shares. and A-cumulative preference shares. and A-cumulative preference shares.
cumulatief preferente aandelen C KLM cumulatief preferente aandelen C KLM cumulatief preferente aandelen C KLM cumulatief preferente aandelen C KLM
(SAK II) has 11.3% of the voting rights (SAK II) has 11.3% of the voting rights (SAK II) has 11.3% of the voting rights (SAK II) has 11.3% of the voting rights
in KLM. The State of The Netherlands in KLM. The State of The Netherlands in KLM. The State of The Netherlands in KLM. The State of The Netherlands
has the A-cumulative preference shares, has the A-cumulative preference shares, has the A-cumulative preference shares, has the A-cumulative preference shares,
which represent 5.9% of the voting which represent 5.9% of the voting which represent 5.9% of the voting which represent 5.9% of the voting
rights.rights.rights.rights.
The State of The Netherlands has an The State of The Netherlands has an The State of The Netherlands has an The State of The Netherlands has an
option to take an interest of up to 50.1% option to take an interest of up to 50.1% option to take an interest of up to 50.1% option to take an interest of up to 50.1%
in the issued capital of KLM in certain in the issued capital of KLM in certain in the issued capital of KLM in certain in the issued capital of KLM in certain
State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the State of the
Total assets 10,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,126 9,242
Group equity Group equity Group equity Group equity Group equity Group equity Group equity Group equity Group equity Group equity Group equity 2,5602,5602,5602,5602,5602,5602,5602,5602,560 2,309
Total liabilities 7,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,5667,566 6,933
Total equity and liabilities 10,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,12610,126 9,242
*** Restated to IFRS
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Statement of EarningsConsolidated | In millions of euros
Net result after taxation 276276276276276276276276276276276276276276276276 255
Depreciation and amortization 444444444444444444444444444444444444444444444444 391
Changes in provisions 6969696969696969696969 78
Changes in operating working capital 6969696969696969696969 (170)
Results of equity shareholdings 4141414141414141414141 (19)
Results on sale of equity shareholdings (1)(1)(1)(1)(1)(1)(1)(1)(1)(1)(1)(1)(1)(1)(1) (1)
Other changes (108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108)(108) (35)
790790790790790790790 499
Net cash used in investing activities
Capital expenditure on intangible fixed assets (11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11)(11) (2)
Capital expenditure on aircraft (579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579)(579) (353)
Disposal of aircraft 2424242424242424242424 54
Capital expenditure on other tangible fixed assets (77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77)(77) (128)
Disposal of other tangible fixed assets 6666666 32
Investment in equity shareholdings 9999999 9
Sale of equity shareholdings 3333333 4
Changes in group of consolidated holdings 1111111 9
Changes in cash and cash equivalents 434434434434434434434434434434434434434434 75
Cash and cash equivalents at beginning of period 738738738738738738738738738738738738738738738738738 663
Cash and cash equivalents at end of period 1,1721,1721,1721,1721,1721,1721,1721,1721,172 738
Changes in cash and cash equivalents 434434434434434434434434434434434434 75
Including Triple A bonds/long-term deposits the overall cash position amounts to 4 1,518 million as at March 31, 2006 (March 31, 2005 4 1,031 million).
Facts and Figures
Statement of Cash FlowsConsolidated | In millions of euros
61
Traªc and CapacityTraffic and capacity figures comprise KLM and KLM cityhopper.
Passenger Business Passenger kilometers Seat kilometers Load factor
In millions 2005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 20062005 | 2006 Change 2005 | 2006 Change 2005 | 2006 2004 | 2005 in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in % in %
The KLM fleet (including KLM The KLM fleet (including KLM The KLM fleet (including KLM The KLM fleet (including KLM
cityhopper and transavia.com) had an cityhopper and transavia.com) had an cityhopper and transavia.com) had an cityhopper and transavia.com) had an
average age of 10.2 years as of 31 March average age of 10.2 years as of 31 March average age of 10.2 years as of 31 March average age of 10.2 years as of 31 March
2006, 0.6 of a year higher than a year 2006, 0.6 of a year higher than a year 2006, 0.6 of a year higher than a year 2006, 0.6 of a year higher than a year
previously. previously. previously. previously.
With the addition to the fleet of one With the addition to the fleet of one With the addition to the fleet of one With the addition to the fleet of one
Boeing 777-200 ER (Extended Range) Boeing 777-200 ER (Extended Range) Boeing 777-200 ER (Extended Range) Boeing 777-200 ER (Extended Range)
and three Airbus A330-200s and the and three Airbus A330-200s and the and three Airbus A330-200s and the and three Airbus A330-200s and the
phasing out of four Boeing 767s a phasing out of four Boeing 767s a phasing out of four Boeing 767s a phasing out of four Boeing 767s a
start was made on phase 2 of the Fleet start was made on phase 2 of the Fleet start was made on phase 2 of the Fleet start was made on phase 2 of the Fleet
Renewal Program. This program entails Renewal Program. This program entails Renewal Program. This program entails Renewal Program. This program entails
the replacement of the 12 Boeing 767s the replacement of the 12 Boeing 767s the replacement of the 12 Boeing 767s the replacement of the 12 Boeing 767s
with eight Airbus A330-200s and four with eight Airbus A330-200s and four with eight Airbus A330-200s and four with eight Airbus A330-200s and four
Boeing 777-200 ERs.Boeing 777-200 ERs.Boeing 777-200 ERs.
A further nine aircraft will be delivered A further nine aircraft will be delivered A further nine aircraft will be delivered A further nine aircraft will be delivered
in fiscal 2006 | 2007 (one Boeing 747-in fiscal 2006 | 2007 (one Boeing 747-in fiscal 2006 | 2007 (one Boeing 747-in fiscal 2006 | 2007 (one Boeing 747-
400 ER Freighter, three Boeing 777-200 400 ER Freighter, three Boeing 777-200 400 ER Freighter, three Boeing 777-200 400 ER Freighter, three Boeing 777-200
ERs and five Airbus A330-200s).ERs and five Airbus A330-200s).ERs and five Airbus A330-200s).ERs and five Airbus A330-200s).
Europe
KLM’s fleet composition was unchanged KLM’s fleet composition was unchanged KLM’s fleet composition was unchanged KLM’s fleet composition was unchanged
during the year. KLM has ordered during the year. KLM has ordered during the year. KLM has ordered during the year. KLM has ordered
two Boeing 737-800s, which will be two Boeing 737-800s, which will be two Boeing 737-800s, which will be two Boeing 737-800s, which will be
delivered in the current fiscal year.delivered in the current fiscal year.delivered in the current fiscal year.delivered in the current fiscal year.
KLM cityhopper recently added three KLM cityhopper recently added three KLM cityhopper recently added three KLM cityhopper recently added three
Fokker 100s to its fleet. The aircraft were Fokker 100s to its fleet. The aircraft were Fokker 100s to its fleet. The aircraft were Fokker 100s to its fleet. The aircraft were
previously flown by another operator. It previously flown by another operator. It previously flown by another operator. It previously flown by another operator. It
also phased out one Fokker 100 and two also phased out one Fokker 100 and two also phased out one Fokker 100 and two also phased out one Fokker 100 and two
Fokker 50s.Fokker 50s.Fokker 50s.Fokker 50s.
transavia.com added one Boeing 737-transavia.com added one Boeing 737-transavia.com added one Boeing 737-transavia.com added one Boeing 737-
700 to its fleet at the beginning of the 700 to its fleet at the beginning of the 700 to its fleet at the beginning of the 700 to its fleet at the beginning of the
fiscal year. Its very young fleet now fiscal year. Its very young fleet now fiscal year. Its very young fleet now fiscal year. Its very young fleet now
counts 27 aircraft with an average age of counts 27 aircraft with an average age of counts 27 aircraft with an average age of counts 27 aircraft with an average age of
less than five years. transavia.com has less than five years. transavia.com has less than five years. transavia.com has less than five years. transavia.com has
one Boeing 737-800 on order.one Boeing 737-800 on order.one Boeing 737-800 on order.one Boeing 737-800 on order.
11 Age in years, excluding operational leases and training aircraft22 Subject to destination, passenger load factor and nature of goods
64
Acknowledgements
KLM Royal Dutch AirlinesHead oªceAmsterdamseweg 551182 GP AmstelveenThe NetherlandsPostal addressP>O> Box 77001117 ZL Schiphol AirportThe Netherlands
T +31 20 649 91 23F +31 20 649 23 24www.klm.com
Registered under number 33014286 in the Trade Register of the Chamber of Commerce and Industry, Amsterdam, The Netherlands.
This is an English translation of the original Dutch language ‘KLM: 2005 | 2006 in beeld – New Horizon’.
Text and adviceJonkergouw & Van den Akker, Amsterdam
Final editorshipKLM Royal Dutch Airlines, Amstelveen
Design, typography and type-settingUNA (Amsterdam) designers
Portrait photographyMarco Borggreve, Bilthoven
PhotographyKLM photo library, AmstelveenCapital Photos, AmstelveenKLM fotoarchief, AmstelveenCapital Photos, AmstelveenHollandse Hoogte, Amsterdam (Reinout van den Bergh, Goos van der Veen, Co de Kruijf )Panos Pictures, London (Crispin Hughes)
