Go Back  PPRuNe Forums > Flight Deck Forums > Rumours & News
Reload this Page >

New AF/KLM CEO killing the one part of the company that makes money?

Rumours & News Reporting Points that may affect our jobs or lives as professional pilots. Also, items that may be of interest to professional pilots.

New AF/KLM CEO killing the one part of the company that makes money?

Old 13th Feb 2019, 09:32
  #1 (permalink)  
Aso
Thread Starter
 
Join Date: Jul 2018
Location: Belgium
Posts: 57
Likes: 0
Received 0 Likes on 0 Posts
New AF/KLM CEO killing the one part of the company that makes money?

Interesting times in KLM/AF... The new CEO is trying to get full control of the company and in doing so creating big upsets @KLM at all levels as all the staff is behind the current CEO who has been doing a great job... That is interesting as the losses and problems are at the AF side. Get the popcorn out as it will become very nasty as the Dutch have learned from the french that striking is the way to get your way in KLM/AF.

The KLM/AF CEO is today in the Netherlands on a secret (!) mission to get the pilot union on his side..
Aso is offline  
Old 13th Feb 2019, 09:56
  #2 (permalink)  
 
Join Date: Aug 2015
Location: Escaped the sandpit 53° 32′ 9.19″ N, 9° 50′ 13.29″ E
Posts: 591
Likes: 0
Received 0 Likes on 0 Posts
Interesting times ahead...
https://www.bloomberg.com/news/artic...nit-ceo-elbers
ExDubai is offline  
Old 14th Feb 2019, 10:39
  #3 (permalink)  
 
Join Date: Jan 2008
Location: Europe
Posts: 135
Likes: 0
Received 0 Likes on 0 Posts
"The new CEO is trying to get full control of the company"

Is that strange? We could re-formulate like this: the dutch side does not want the group's CEO to control them.
fab777 is offline  
Old 14th Feb 2019, 12:25
  #4 (permalink)  
 
Join Date: Jul 2010
Location: Fl410
Posts: 92
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by fab777
"The new CEO is trying to get full control of the company"

Is that strange? We could re-formulate like this: the dutch side does not want the group's CEO to control them.
its not that! The dutch side knows that without a partner, KLM would be much smaller then it is today, what the dutch dont want, is to make up the losses from their french colleagues, leaving no money to invest in their own product.
and why do the french lose money? Hint: allergy to work —> eager to strike.
and no: im not in KLM, im flying for the LH group
sekmeth is offline  
Old 14th Feb 2019, 13:02
  #5 (permalink)  
 
Join Date: Jan 2017
Location: europe
Posts: 156
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by sekmeth

its not that! The dutch side knows that without a partner, KLM would be much smaller then it is today, what the dutch dont want, is to make up the losses from their french colleagues, leaving no money to invest in their own product.
and why do the french lose money? Hint: allergy to work —> eager to strike.
and no: im not in KLM, im flying for the LH group
Yes, never heard of a strike at LH
arketip is offline  
Old 14th Feb 2019, 13:13
  #6 (permalink)  
 
Join Date: Mar 2006
Location: s england
Posts: 283
Likes: 0
Received 0 Likes on 0 Posts
If only it had been BA KLM.
sudden twang is online now  
Old 14th Feb 2019, 13:48
  #7 (permalink)  
 
Join Date: Mar 2002
Location: west
Posts: 131
Likes: 0
Received 0 Likes on 0 Posts
You only have to look at the comparison in operating results over the last 5 years to see why KLM employees would be unhappy at a change at the top. There have been big efforts across the company to get past the effects of the recession and fight off the unfair competition from further east. The person at the top in my opinion has been critical to this success so far.
tocamak is offline  
Old 14th Feb 2019, 13:49
  #8 (permalink)  
 
Join Date: Jun 1999
Location: world
Posts: 3,424
Likes: 0
Received 0 Likes on 0 Posts
Yes, never heard of a strike at LH
The poster stated he/she worked for the LH Group. That does not mean he/she is LH crew! Don't confuse LH and the LH Group! Yes LH have had strikes, but other carriers within the group were not part of the industrial action.
Hotel Tango is offline  
Old 14th Feb 2019, 15:59
  #9 (permalink)  
 
Join Date: Jan 2017
Location: europe
Posts: 156
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Hotel Tango
The poster stated he/she worked for the LH Group. That does not mean he/she is LH crew! Don't confuse LH and the LH Group! Yes LH have had strikes, but other carriers within the group were not part of the industrial action.
Yes, true, maybe he works for Swiss, you know the successful one that went bankrupt...
arketip is offline  
Old 14th Feb 2019, 16:18
  #10 (permalink)  
 
Join Date: Jan 2008
Location: Europe
Posts: 135
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by sekmeth
and why do the french lose money? Hint: allergy to work —> eager to strike.
I will teach you something today: there are lazy germans, I know one of them. There are also french who cannot cook, dutch who will not win a bargain, italians who can talk with both hands tied.

thus you may drop that idea that french are just "lazy"

(And also have a look at AF-KLM group's financial datas)
fab777 is offline  
Old 14th Feb 2019, 16:36
  #11 (permalink)  
 
Join Date: Aug 2000
Location: Berkshire, UK
Posts: 54
Likes: 0
Received 0 Likes on 0 Posts
Good to read such harmony among different countries and airlines of the EU.
Now do people see why 'ever closer union' won't work?
overfly is offline  
Old 14th Feb 2019, 16:48
  #12 (permalink)  
 
Join Date: Oct 2018
Location: Ferrara
Posts: 8,366
Received 355 Likes on 206 Posts
Originally Posted by sudden twang
If only it had been BA KLM.
be the same as Unilever or Shel.. the dutch would run it....
Asturias56 is offline  
Old 14th Feb 2019, 19:04
  #13 (permalink)  
Pegase Driver
 
Join Date: May 1997
Location: Europe
Age: 73
Posts: 3,668
Likes: 0
Received 0 Likes on 0 Posts
The parent company is considering replacing Elbers over concern he may not fully support plans to strengthen ties between the two carriers, which came together in a 2004 merger yet have long operated semi-independently and suffer a cultural divide.
It is not only the French and Dutch cultures clashing , it is also adding the Canadian one and possibly a longer term global vision that definitively AF did not have.
ATC Watcher is offline  
Old 14th Feb 2019, 19:23
  #14 (permalink)  
 
Join Date: Oct 2003
Location: uk
Posts: 61
Received 0 Likes on 0 Posts
Originally Posted by sudden twang
If only it had been BA KLM.
Or AZ KLM as was meant to be! :-)
geriatrix is offline  
Old 15th Feb 2019, 01:37
  #15 (permalink)  
 
Join Date: Jul 2007
Location: across the equator
Age: 79
Posts: 56
Likes: 0
Received 0 Likes on 0 Posts
Or should have stayed 'single', with SQ as an succesful example....
BedakSrewet is offline  
Old 15th Feb 2019, 03:58
  #16 (permalink)  
 
Join Date: Jul 2004
Location: Netherlands
Posts: 724
Received 1 Like on 1 Post
Originally Posted by overfly
Good to read such harmony among different countries and airlines of the EU.
Now do people see why 'ever closer union' won't work?
Depends on what you want to unite. Right now the AF-KL relationship is more like a colony that is being exploited, Just to keep the home country population happy.
The EU as an economical entity exposes deep problems in France, where yellow jerseys protest because the economy of France can not keep up with northern EU members.
Makes this “battle” quite explosive, full of politics.
fox niner is offline  
Old 15th Feb 2019, 06:13
  #17 (permalink)  
 
Join Date: Feb 2006
Location: Europe
Posts: 167
Received 0 Likes on 0 Posts
I am not sure that you understand the yellow jerseys protest....
So, maybe better to keep on aviation facts and as said by fab777, look at AF-KLM group's financial data.
Also, why KLM was never able to make any allainces in Europe: British Airways, Air Littoral, Alitalia and other ones that I do not remember. Oh, I know, this is because of the others, nothing to do with the Dutch culture!
Bidule is offline  
Old 15th Feb 2019, 07:22
  #18 (permalink)  
Pegase Driver
 
Join Date: May 1997
Location: Europe
Age: 73
Posts: 3,668
Likes: 0
Received 0 Likes on 0 Posts
Being French myself but having worked in Holland for over 30 years, I can I believe understand both cultures. The Dutch should forget for a moment their natural sense of knowing everything better and perhaps look at what happened in the last decades to airlines in countries of similar size : Sabena, Swisair, Malev etc.. all gone. Without a successful merger they probably also be gone today. What the French should also put their natural senses of being a superior power ( a bit like the Brits ) and stop treating the Dutch and KLM as inferiors . Without the KLM merger AF would also not be what it is today. The traditional AF milk cows of monopolies in both domestic and Outre-mer routes is no longer there. And the synergy of using 2 hubs SPL and CDG brings money to both airlines.
Today a Canadian , coming from outside Europe, wants to reshuffle the cards and probably is not bothered by national prides and only looks at both airlines as just departments of a larger company.. I cannot say this is a bad thing. per se. Egos bruised , oh yes, but is this the most important ?.
ATC Watcher is offline  
Old 15th Feb 2019, 12:59
  #19 (permalink)  
 
Join Date: Jul 2010
Location: Fl410
Posts: 92
Likes: 0
Received 0 Likes on 0 Posts
Good point! But in recent years my company didnt strike. And its not that im against strikes. But it doesnt make sence to strike over a payrise while your company (not the holding) loses money.
sekmeth is offline  
Old 15th Feb 2019, 13:31
  #20 (permalink)  
Paxing All Over The World
 
Join Date: May 2001
Location: Hertfordshire, UK.
Age: 67
Posts: 10,143
Received 62 Likes on 50 Posts
ATC Watcher nails it. Since the 'merger' took place not a great deal has changed and all the usual advantages of a merger have not been realised. When merging, the best is to action FAST. Push the two together and do the horrible job of making redundancies and cuts - THEN build something new and, hopefully, improved. If they do not change they will get taken over, however, SkyTeam cannot let them fail. Many fireworks before this is settled.

Countless large mergers fail because the two cultures will not merge or were not compatible in the first place. Daimler Chrysler for example threw away some $29 BILLION. The whole article (and others related to this huge waste of money) should be read by all at the top tables in KLM/AF (of course there is the problem - there should only be one top table): Harvard Business Review
That Daimler can sell Chrysler as a more-or-less intact unit to a private equity firm tells you all you need to know about why the combination failed. The two organizations never were integrated into anything that approached a cohesive whole. The potential synergies that were used to justify the deal went unrealized.

Why did this happen? Because the two organizations really didn’t like each other, and couldn’t cooperate to the extent necessary to make the combination work. Serious efforts to integrate the operations of Daimler and Chrysler foundered on lack of trust clashes between the mid-market cowboys of Detroit and the high-end knights of Stuttgart.

The seeds of post-merger disintegration were sown early when it became obvious that a “merger of equals” was actually a takeover of Chrysler by Daimler. And there were unbridgeable differences in the cultures of the two organizations. As is too often the case in acquisitions, the synergies were all on the surface.
PAXboy is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.