Dutch flag-carrier KLM has reaffirmed plans to bring its two no-frills operations under a single brand name. It will also seek to replace its ageing BAe 146 fleet with new narrowbodies either from Airbus or Boeing.
Decisions on new aircraft, and the rebranding of Amsterdam-based Basiq Air and London Stansted-based Buzz under either name, await results of a study of KLM's low-cost operations due for completion in the coming months.
The announcement came as the airline posted a doubling of net losses for the year ended 31 March as compared with last year to €156 million ($142 million) and a trebling of operating losses to €277 million. Operating revenues dived by 6% to €428 million as traffic revenues slid 5% in line with traffic. In contrast to most other major European carriers, KLM says it has maintained yields while passenger load factors have slipped by just 1% thanks to a 4% reduction in capacity. Cargo traffic fared better, dropping by just 3%.
Results for the first three months of the year did, however, point to a recovery in air-freight markets. The passenger business also rebounded in the final quarter as load factors rose 3.5%, and in March business-class traffic levels were "especially encouraging". The airline is particularly optimistic about Basiq Air and Buzz, both of which saw substantial traffic increases. KLM says "prudent" additions to capacity should help secure an operating profit, although possibly not a net profit, for the next fiscal year.
The carrier is finalising details of the first phase of its long-haul fleet renewal programme, under which eight remaining Boeing 747-200 stretched upper deck (SUD)/300 passenger and combi aircraft will be replaced by 2005. This will involve leasing six Boeing 777-200ERs and purchasing four more. Three Boeing 747-400ER freighters will also be ordered to replace the airline's two 747-200 SUD freighters.
The airline will also conclude a sale and lease back of two of its 10 Boeing MD-11s next January for two years. Phase two of the renewal involves Airbus A330-200s and additional 777s, replacing eight MD-11s and 12 leased Boeing 767s.
Source: Flight International
