8.7 C
Utrecht
Thursday, 26 November 2020
No menu items!
Home Columns Money Why the government will not let KLM go bankrupt: Utrecht University professor...

Why the government will not let KLM go bankrupt: Utrecht University professor answers

Last updated 1 month ago by Michael Darmanin

The corona crisis has changed our world radically. From small to big, all players are affected. Giant corporations which seemed untouchable are now crumbling. This is also the case for the famous KLM, the oldest active airline in the world. Dr. Bram Bouwens, a historian at Utrecht University discussed the past, present, and future of the company.

KLM: more than a company

Dr. Bouwens explains that KLM has been around for 101 years. This allowed it to build a prestigious image. And with prestige come devoted employees. Last year, when KLM’s CEO was heavily criticized for the Air France and KLM discussion, employees organized demonstration in support of their leader. This suggests that letting KLM fall, would mean letting a whole culture vanish.

The crown, the economy, and the politics

The Dutch government kept pumping billions of euros in the company since the beginning of the corona crisis. It is unlikely that they would have done this without a good reason. And that reason exists. Dr. Bouwens reminds us that although struggling now, KLM nonetheless creates a lot of jobs both directly and indirectly. Political reasons motivate the decision as well: there is a certain pride in having a national airline.

No free money

The government’s help comes at a cost. The aid received by KLM in June came with several caveats such as cutting the costs by 15%, cutting 7000 night flights, and committing to cut the CO2 emissions until 2030 by 50 percent per passenger.

KLM responded and submitted their restructuring plan to the Ministry of Finance. The company mentions that it successfully closed deals with all the relevant worker unions. Demonstrating the dedication of its employees. Some measures included in the plan are: giving up on renewing 1500 short-term contracts, having 2000 employees joining a voluntary resignation scheme, ceasing the use of leased aircraft, and building a more efficient fleet. Many other measures were taken as well. So for now, the future seems promising.

Silviu Alexandru Costea
Silviu Alexandru Costea
Silviu A. Costea is a psychology student with a deep appreciation for beauty, may it be in art, science, nature, or anywhere else. With his passion for writing and experience as an international student, he is dedicated to providing quality content on various topics. He is a keen listener and he is convinced that everyone has a story worth sharing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Popular in the last 7 days

No fireworks this New Year in the Netherlands

The year will not end the usual way in the Netherlands this time. The Dutch government last week announced a one-off ban on traditional...

A corona-proof friend: Popular dog breeds in the Netherlands

This article is looking into popular dog breeds in the Netherlands and giving a few reccomendations on how to find your favourite dog.

Utrecht University scientists: Breakthrough in studying SARS-CoV2

The second wave is knocking on Europe’s door. The winter is almost here as well, with shorter days and darker nights. But there is...

Unusual Travel Tales part 1: White nights of Russia

Satiate the wanderlust quench with unusual travel tales. Here's presenting White Nights of Russia and some glance of the Golden Ring.

More from this Author

Utrecht University scientists: Breakthrough in studying SARS-CoV2

The second wave is knocking on Europe’s door. The winter is almost here as well, with shorter days and darker nights. But there is...

Utrecht University: Not all are affected equally by the pandemic

The COVID-19 pandemic affects us all in many different ways. However, research shows that certain groups in society are more likely to be affected...

The Dutch Climate Help Desk: Its Utrecht origins

Climate change is on the news almost every day. We hear about it on TV, radio, podcasts, and news websites. But there are still...

Utrecht: Europe’s future Silicon Valley?

When someone mentions the words innovation and technology, we might think of a company in Silicon Valley. This is true especially when it comes...