vouwlijnen

KLM was the fi rst airline to use biofuels on commercial fl ights. Together with its venture SkyNRG, KLM introduced the fi rst Corporate BioFuel Program through which companies can use sustainable biofuels for parts of employees’ fl ights, thereby stimulating the further development of a market for biofuels.

Single European Sky for an Effi cient and Cleaner Use of AirspaceThe European airspace is currently being controlled by 36 national air traffi c management bodies. Due to this fragmented structure, detours are frequent. The fl ight Zurich-Amsterdam, for instance, could be shortened by 220 km. Implementation of Single European Sky could reduce CO2 emissions up to an impressive 10%.

KLM and it surroundingsKLM feels very strongly about engaging in a dialogue with the community surrounding the Schiphol area. The airline realizes that the neighbouring residents do not only enjoy benefi ts such as employment but face negative side effects including noise pollution. Over the years, airlines operating on at Schiphol have contributed more than € 750 million in soundproofi ng levies. KLM has taken the brunt of these payments.

The difference in net profi t margins between airports and airlines is substantial21,3% Schiphol Group (2016) versus 4% Europese airlines

European airlines on average make a € 7.09 net profi t per passenger. Schiphol net profi t has doubled since 2009 to € 306 million in 2016. Dividend has increased from € 65 million in 2009 to € 148 million in 2016.

Third-Largest Private Employer in the Netherlands KLM Group has 34,363 employees and is the third-largest employer in the Netherlands, with 26,073 FTEs. The Dutch aviation industry accounts for 370,000 jobs including catalytic effects.

The Most Sustainable Airline Group in the WorldCorporate Social Responsibility (CSR) is an intrinsic part of KLM’s strategy and business operations. Air France-KLM has been ranked the most sustainable airline worldwide according to the Dow Jones Sustainability Index, the leading international index for measuring sustainability, for 12 years in a row.

KLM wants to further reduce CO2 emissions per passenger by 20% in 2020, compared to the year 2011. KLM is involved in efforts to develop sustainable biofuels. Its CSR initiatives are aimed to contribute both to KLM’s environmental footprint, as well as the operational result. That is the only way KLM can generate sustainable value to society and contribute to making Schiphol a sustainable airport that can compete globally.

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KLM in briefImportant facts and fi gures2017

• The world’s oldest airline still operating under its own name

• Most sustainable airline for 12 years in a row

• Safest European airline of 2016• Most punctual airline of 2016

KLMKoninklijke Luchtvaart Maatschappij N.V.

Afdeling Public Affairse-mail: public.affairs@klm.com

tel: 020 6487868

KLM Group Employment Figures 2016

Headcount KLM Group Staff (per end of fi nancial year)

Jobs created in the Netherlands (including catalytic effects)

Air France-KLM total (headcount)

34,363

370,000

87,917

Military Airspace

shortest route

Amsterdam

Zurich

-­‐10,0%  

0,0%  

10,0%  

20,0%  

30,0%  

40,0%  

50,0%  

60,0%  

2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015   2016  e  

Comparing  net  profit  margins  

Airlines  worldwide   Airlines  Europe   Schiphol  Group  

European airspace ineffi ciency

A pioneer for 97 yearsThe Koninklijke Luchtvaart Maatschappij KLM was established on October 7th, 1919. KLM is the world’s oldest airline that still operates under its original name. This year, KLM celebrates its 98th anniversary. KLM has been part of the Air France-KLM Group since the merger in 2004. Since then, KLM’s revenues have almost doubled and the KLM network has expanded. KLM received the FlightStats Punctuality Award as the world’s most punctual airline of 2016. The German Jet Airliner Crash Data Evaluation Centre (JACDEC) declared KLM the safest European airline of 2016.KLM is the core of the KLM Group, which also includes the wholly-owned subsidiaries KLM Cityhopper, Transavia and Martinair.

Economic Engine Together with her partners, KLM is the largest carrier of both transfer passengers and point-to-point passengers boarding at Schiphol. Partner airline Delta Air Lines operates 19 daily fl ights from Schiphol. KLM is one of the largest providers of fl ights between Europe and ‘Greater China’ with 67 fl ights a week in cooperation with partners. Using codeshares, KLM offers 728 destinations around the globe via the hubs of its partners. KLM is one of the 20 airlines that form airline alliance Skyteam, offering 1,062 destinations in 177 countries.

The KLM Network Makes Schiphol into a Mainport.The KLM network is essential to the Dutch economy. Thanks in part to this network, the Netherlands has become an important place of establishment for both Dutch and international companies. The KLM hub network, in cooperation with its partners, connects the Netherlands with almost all the major economic regions of the world. Thanks to the KLM network, Schiphol is one of the four most important airports in the European Union and ranks third in passenger numbers.

Including the catalytic effect, aviation’s contribution to the Dutch GDP is € 27 billion. In its White Paper on Dutch Aviation (Luchtvaartnota), the government states that the quality of the Netherlands’ global network of connections is paramount to the economy.

A Level Playing Field for a Global Sector The global network of connections that KLM offers should not be taken for granted. SEO research shows that KLM and Schiphol need to work harder to remain competitive with competitors with larger home markets. KLM primarily transports passengers from outside the Netherlands, via Schiphol, to their fi nal destination. These transfer passengers can also choose to take another route on a different airline. Without transfer passengers, KLM would only be able to offer a very limited number of direct intercontinental connections. A competitive cost level is crucial to maintain and develop this hub network.

The KLM network is large despite the small Dutch domestic market and therefore offers the Netherlands a disproportionately large bridge to the world. Competitors with a large home market fi ll a large segment of their fl ights with domestic customers. KLM needs to attract transfer passengers with extra-low rates.

Without transfer passengers, empty planes and no connections for the Netherlands Example: fl ights to Mexico

National and EU regulations have a direct impact on the global competitiveness of European and Dutch airlines. EU regulations should not disturb the level playing fi eld for European and Dutch airlines. This concerns, for example, passenger rights regulations for airlines. This regulation can for example cause € 250,000 in delay compensation for a Boeing 777-300 fl ight. This would exceed the income for that fl ight and it would take the profi t of another 250 fl ights to compensate the passengers for this single fl ight.

A level playing fi eld is also crucial where it concerns competition with airlines from the Gulf region. Brussels should not impose measures that do not apply to non-European airlines.

The UN aviation body ICAO was created in 1944 to establish worldwide regulations. Hence, international agreements and regulations for the sector are to be made within the framework of ICAO. In 2016, in ICAO, aviation was the fi rst industry that reached a global agreement to reduce CO2 emissions. This agreement was historic. KLM supports the Dutch government position that the European Emission Trading Scheme needs to end as soon as the ICAO system called CORSIA takes effect.

Security cost levels need to be in line with competing airportsA strong mainport needs an innovative and effective border passage process. This requires enough Royal Marshals. Further, preclearance needs to be introduced in accordance with the government Schiphol Action Programme and security costs have to be in line with competing airports. Security composes 35% of all charges that airlines pay at Schiphol. SEO research shows this is the highest percentage compared to competing airports. Dutch airlines pay €287 million on security (2016), while airlines in Dubai and Turkey pay € 21 million and € 0 respectively. The 2016 report by SEO shows that lowering charges to airlines by €100 million (€4 per ticket) would create 4,300-4,600 new jobs and would create extra benefi ts to the economy of between € 340-360 million.

1919 1921 1926 19381956 1958 1959 1959

1965 1972 19911981

Thuis in de lucht.

Mexico

Amsterdam

London

United Kingdom64,6 millioninhabitants

(2014)484210

14779

Local passengers

Transfer passengers

Empty seats

%%%

%%%

The Netherlands16,8 millioninhabitants

(2014)

KLM Group is the Third-Largest Private Employer in the Netherlands

Destinations from Schiphol Summer 2017

KLM 159

KLM & partners 195

Intercontinental 82

Europe 113

Traffi c 2016:KLM Group: Passengers on Schiphol 35.2 mln

KLM Group and partners:

Passengers on Schiphol 43.4 mln

Percentage of passengers on Schiphol 68 %

Cargo AF-KLM-Martinair on Schiphol 928 kilotonnes

KLM Group: € 457 million yearly contribution to Schiphol costs Dutch aviation is the only transport sector that completely pays for its own infrastructure and a majority of its security.KLM Group contributions in 2016:

Infrastructure € 260 million

Security € 142 million

Air Traffi c Control € 55 million