KLM to cooperate with Easyjet instead of competing?
 

Hi all,

Two weeks ago, following newsmessage was published in the papers:
KLM gaat prijsvechten - Binnenland | Het laatste nieuws uit Nederland leest u op Telegraaf.nl [binnenland]

In short:
KLM is going to fight the LCC's flights from AMS to major European tourist destinations such as Madrid, Barcelona and Milan by agressively lowering fares.

My question, isn't it better for KLM to cooperate with the Low Cost Carriers (i.e. Easyjet) on their common routes? Perhaps some kind of code sharing agreement where Easyjet is acting as a feeder?

Looking forward to your opinions!

Jeroen

Utterly different business models I'm afraid. easyJet are point to point LCC with no explicit ability to make coonnections, KLM serve a hub and spoke at Schipol using their narrow bodies to feed the long haul at the hub as well as offering a (arguably) quality product on inter European routes.

Not sure what easyJet would add to KLM as they don't offer through ticketing.

It's comparing apples and pears !

The problem with the concept of connecting from KLM to easyJet is the fact it'd be a highly dis-pleasurable experience come down in my opinion.

I don't have (that) much against easyJet, but I'd want to fly KLM on all legs of my connections.. wouldn't want to touch easyJet if I'd paid hundreds on flights to the States, for example.

Doesn't exactly do wanders for the KLM brand either.

and whats wrong with the Transavia brand?

Regarding the added value:

To my understanding, several routes are flown by both KLM and Easyjet in which the blue bird is following the orange bird (as in load factors). Therefore, I think that by, for example, buying seat blocks KLM can operate more efficient by using the resulting capacity on more profitable routes.

Regarding the service differences:

The service issue is a valid point you bring up.. Aren't most of these flights related to feeding passengers into the hub? In which people go for the service of the intercontinental flight?

Regarding Transavia:

I think that for KLM it is indeed better to "use" their daughter Transavia to compete with Easyjet. Before that a lot of work needs to be done regarding their business model?!

Tim

A BBC report suggest that KLM will add three more AMS routes from the UK in 2013, in addition to Manston already announced.

BBC News - Could airport hub capacity see UK lose out to rivals?

Any idea what those could be?

Largest markets (airport size-wise) not served by KLM are (thus not including secondary airport at cities already served):

Liverpool
Nottingham East Midlands
Belfast
Southampton
Doncaster
Exeter
Bournemouth
Southend
Inverness
Derry
Blackpool
Newquay

Of those, only Doncaster, Bournemouth, Derry, Blackpool and Newquay have no AMS link at this point, while the others are served either by Easyjet (LPL, BFS, SEN) or Flybe (EMA, SOU, EXT, INV).

Not sure if we can rule out LPL and SOU given that KLM axed an existing link not too long ago.

They technically operate out of SOU, via a codeshare on Flybe's 3 daily flights. They also had their own service on Saab 340's at one point but that ended ages ago!!

As for the new airports I'm going to guess would be they BOH or EXT, EMA and BFS/BHD.

Liverpool did gave KLM but they left. Probabky due to other airlines at the same airport offering the same route.

How about Gatwick, Stansted or even Luton?

How about Cambridge?

Don't they already operate to INV ?

KLM are losing UK market to the Gulf carriers. Many of those long haul pax from the UK regions that used to hub through Amsterdam to the east and south, are now using gulf carriers as an alternative to connecting through any European Hub whether Amsterdam, Heathrow or elswhere.

The logical response from KLM is to serve more regional airports in UK, to offer a closer link to the world than presently available from BA, Emirates, QAtar and Etihad.

It will be interesting to see where KLM end up in UK and how Emirates in particular responds.

For example a code share between Emirates and Loganair could see all of Scotland's long haul market east and south Connecting through Glasgow.

Interesting times as ever!

FF

I would put my money on EMA, BHD and BOH.

The article says cities, not airports, so I don't think any other London airport is on the cards. Besides that, does not make much sense as the new routes are about connections through AMS which are no longer available for UK residents through LHR.

That's Flybe with a single daily flight. Not sure if it is codeshared, but in its current form it is of little use in a hub and spoke operation.

I have thought about some more exotic destinations as well, given that KLM chose Manston over all the other, more estalbished and bigger airports I mentioned above.

Interesting to see KLM publicly stating that they plan to compete with LOCOs aggressively. KLM charge insane prices for one way flights, trying to encourage the passenger to do a return and hence not cherry pick between them and others, and commonly LOCOs.

KLM did do some sort of trial on some AMS UK routes with low one way fares. Does anybody know what the findings of this trial were? Have KLM extended this or is this the basis of the new aggressive approach?

I recall the routes included Leeds/Bradford and Liverpool (I realise now confined to the KLM history book!)

EI-BUD

I know that NQY recently sent out an online survey and specifically mentioned AMS in a would you use it type question.


cs

Well, whatever KLM does with its UK market it's going to have to sharpen up its customer service, if my recent experience is anything to go by. Flight times changed without telling pax, 'booked' on alternative flights that they knew were full and already overbooked, clunky, inaccurate and unhelpful website, transit desk at Schiphol with long queues and virtually no-one on duty. It's a shadow of its former reliable self.
NS

Looks like Bhd no Dsa

losing out? Lots of ex UK routes are showing month on month AMS increases. INV must be a codeshare as bookable on KLM.

Inverness is BE's flight with a KL codeshare.

How about DND getting a flight to AMS on a CB operated DO328 :ugh:

CAA stats
 

CAA stats for last ten years show Netherlands has not fared well from UK, especially when compared to flows to Middle East and Turkey. Total pax today is not much more than in 2001 for UK - Netherlands.

http://www.caa.co.uk/docs/80/airport..._2001_2011.pdf

There is no doubt that KLM are suffering from EK competition, both in UK and at home. KLM is not alone, but at least they can fight back by serving their hub in Amsterdam from more regional airports in Europe than the Gulf carriers can offer.

3 years ago there was no EK service from AMS to DXB, now its a daily A380 with Etihad shortly starting AMS - AUH.

Ultimately all this competition will be good for UK regional airports and bad for legacy carriers in Europe and Asia.

FF