KLM Cargo: Past, Present, Future |
BSAB 410: Management of Air Cargo |
John M. Barbachano |
29 January 2016 |
BSAB 410: Management of Air Cargo |
Table Of Contents
II. Mergers and Alliances
III. Management and Organization
V. Employee Benefits
VI. Countries Served and Hubs
VIII. Hard Times
KLM is the oldest air carrier in the world that is still operating under the same name. The airline was founded on October 7, 1919. The proper name of the airline is actually Koninklijke Luchtvaart Maatschappij voor Nederland en Koloniën – KLM. The first flight of the airline ...view middle of the document...
This was done in the 1970’s by converting some of their fleet of B747’s to “combi” aircraft with the capability to carry more cargo or more passengers and cargo.
Up until the 2000’s, KLM went about business as normal, upgrading aircraft adding new routes and services. Then in 2004, KLM and Air France merged and became KLM-Air France. This merger led to more mergers and eventually KLM-Air France took over Martin Air (which only consisted of air cargo services, expanding the KLM Cargo department’s scope of service) and became partners with Delta Airlines, then leading to the joining of the Sky Team Cargo Alliance group.
Mergers and Alliance
For an air cargo company to become this successful and to last this long in a tough market it must have a good company vision and plan into the future. Air France-KLM Cargo philosophy on how they pursue their business in the present and into the future is quite realistic. This merge has always been one of the leaders of the air cargo business. KLM Cargo believes in the ideas that the customers are the first and most important aspect of their business model. They want to ensure that all customers’ needs are met by providing solutions to problems by increasing more access with better value and being capable of agility. The Air France-KLM team’s mission statement states that,
“KLM strives to achieve profitable growth that contributes to both its own corporate aims and to economic and social development… KLM wants to become the most customer centric, innovative and efficient European network carrier. KLM wants to be the customers’ first choice, to be an attractive employer for its staff and, a company that grows profitably for its shareholders. Both the modern traveler and freight companies require as much flexibility as possible and a wide range of choices.” (www.KLM.com , About us)
Some of these important aspects and their vision cannot be made to happen unless there were key individuals and departments in the organization that made it their mission to meet these requirements. The company is lead at the top by an Executive Committee that is made up of directors and executive officers; starting with Pieter Elbers as the Pres. And CEO, the managing director and Chief Financial officer, Erik Swelheim and Chief Operating Officer, René de Groot. The group is then further broken down into further functions and departments: The Cargo group of Air France-KLM have their own management team that is led by EVP of the alliance, Bram Graber, with EVP Air France Cargo, Alan Malka and EVP of KLM Cargo & Managing Director of Martin Air, Marcel de Nooijer.
The management of the KLM Cargo organization has a pretty decent size inventory that they need to make sure things are working as required to meet the mission statement of the company. The KLM Cargo division is made up of approximately ten freighter specific aircraft, transporting 5,400 cargo tones worldwide with approximate...