Well done, 1stspotter - a new thread needed. I think AD and indeed the world may be surprised to hear that the policy is common across many major airlines. Reduction of 'contingency fuel' below the traditional 5% on a statistical basis (as KLM appears - see 'Dutch TV' thread) came into play in BA in my time (up to 2004).
It is not unreasonable to expect crews to make sensible decisions on extra fuel uplift rather than the 'historic' knee-jerk "I'll take a bit extra". As discussed ad nauseam in many threads - don't have enough? - divert. See what the bean counters make of that.