I have asked the same question and have failed to see a response I fully comprehend. So, armed with no facts, we can only assume and this is my assumption.
1) DTV Airport is right - they are losing money on charter flights and decided to stem the losses by cutting them.
2) The losses on a charter flight though can't be any more (materially) than the losses on the KLM/Eastern flights. There would be huge public outctry if Peel kicked out KLM and there could be a KLM contract in place which prevents Peel from doing that. I am in no doubt though that Peel loses money on KLM and Eastern but instead of cutting these to save money they are trying to subsidise them by making money elsewhere.
I make my assumption on (2) not knowing what fees the airport get from the landing and departing aircraft, but I would claim that those typically business passengers will spend a lot less discretional expenditure within the airport campus.
So, we are now in a waiting game as to passenger operations. None of us know the amount of money KLM makes on our flights. However, we do know that rolling passenger numbers have fallen in each of the last 12 months and the recent
PR isn't likely to help. This could lead to 4 outcomes:
1) KLM numbers stabilise, KLM are making enough money and Peel can subsidise the losses from elsewhere -
WIN
2) KLM numbers stabilise, but KLM are not making enough money and pull the plug when they want or when any contract expires. -
LOSE
3) KLM numbers stabilise, KLM are making enough money but Peel can't subsidise from elsewhere - i.e. the plan fails. -
LOSE
4) KLM numbers continue to fall beyond which is acceptable to them and they pull the plug when they can -
LOSE.
3 out of those 4 outcomes result in the end of passenger operations at some point in the near future. The one that doesn't means:
1) The current trend on KLM passenger numbers has to STOP.
2) Peel have to successfully deliver on a promise with a zero per cent success rate so far.
All this adds up to the real likelihood that passenger operations will stop in the next 18 months. Continuing is possible....but the chances are becoming smaller as each month passes.
On a side note, I have information from a reliable source that tells me "KLM remain committed to the airport and have no plans to pull out, but cannot understand the direction the aiport are taking adding - if they can do that to Thomson, they can do it to us".
Interesting, if sad, times.