Max Kingsley-Jones/LONDON
Airbus Industrie and Boeing are vying to provide KLM with up to 30 long haul aircraft to enable the Netherlands flag carrier to standardise its widebodied fleet and to reduce the number of types in operation. Any deal could also involve aircraft for its strategic partner, Alitalia.
Although KLM officially denies that it is actively involved in a sales campaign, Airbus and Boeing are believed to be bidding to supply 25-30 aircraft, with Airbus offering the A340-600, and Boeing the 777-300/300X. Smaller versions of the two types could also be included in the deal.
The Dutch airline's 52 aircraft medium/long haul fleet effectively includes four different types - 13 Boeing 747 "Classics" (-200 stretched upper deck/300), 19 747-400s (plus one on order), 10 767-300ERs and 10 Boeing MD-11s. Airline sources suggest that KLM is keen to rationalise the types, and associated pilot type ratings.
The 767s were acquired in 1995-7 on initial seven year operating leases from International Lease Finance, meaning that they could be returned between 2002 and 2004 if the leases are not extended. Although the MD-11s are relatively young, the airline may be concerned that the aircraft's long term future as a passenger airliner is limited, and could follow the example of operators such as Swissair and American Airlines, which have already ordered new aircraft to replace the type.
KLM has committed to upgrading the flightdecks of its 747 Classics, but the majority of the 13 aircraft are combis. Two aircraft have already been earmarked for freighter conversion, and more could follow.
KLM has been seeking to reduce its cash holdings, which stood at over Dfl12.8 billion ($1.3 billion) in December. Other than its single 747-400 order, and one for four 737-800s for short haul routes, the cash rich airline has no outstanding order commitments.
The Dutch carrier is also understood to be ready to help Alitalia with its fleet re-equipment as part of the price of the strategic alliance deal struck between the two airlines at the end of 1997. Although KLM has stressed that there is no cash involved in the alliance, assistance is expected to come in the form of a finance deal worked out through the Dutch group's newly set up, but as yet unused, Irish leasing subsidiary.
Source: Flight International
