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Category Archives: Airlines

Will Air France/KLM split?

The cultural differences between Air France and KLM are large and the Air France/KLM holding company is certainly no love affair. But both personal and business interests facilitate the takeover by Air France in 2004.

Business and personal interests

The business interest is that Air France - thanks to KLM's top management - can buy KLM for next to nothing. The personal interest is that Air France showers KLM's management with princely salaries and very high bonuses. However, the takeover creates a combination of 2...
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Flybmi bankrupt: now what?

FlybmiIn the evening of Saturday February 16, 2019, Flybmi collapses without any warning. As a result, hundreds of passengers find themselves stranded throughout Europe. The airline cites higher fuel costs and uncertainty caused by the UK's upcoming departure from the European Union as factors determining its fate.

Demise not unique

In 2018, the carrier operated 17 aircraft on European routes and employed 376 people in the UK and 3 other EU countries (Belgium, Germany and Sweden). Flybmi's demise is far from unique. Other European airlines that recently went bust include Monarch in the UK, Air...
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Air France bigger, but less profitable than KLM

Air France/KLMIn 2004. Air France takes over KLM Royal Dutch Airlines for next to nothing, Air France pays less than KLM's intrinsic worth. KLM's top managers receive generous rewards for making the profitable deal possible. As part of the deal, they receive several years later an equally generous "retention bonus" for extending their contracts.

Cultural differences

Right from the start, cultural differences play an important role. The French - or Latin - culture is more permissive as to corruption than the Dutch culture.
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Charging for minor mistake

Micheal O'Leary Next year, Ryanair's boss Michael O’Leary will step back from his current job. He will not step down, but rather step up to the position of group chief executive of Ryanair after the airline will have been restructured. The flamboyant O’Leary has been appointed chief executive officer of Ryanair in 1994.

Entertaining speaker

He is an entertaining speaker, but he has made quite a few eyebrow-raising statements. In 2012, Suzy McLeod, her 2 children, and her parents, fly from Bristol, UK to Alicante, Spain. As the trip lasts 15...
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Do you tip your flight attendant?

Frontier AirlinesFrontier Airlines has experience with inflight tipping. It is a low-cost carrier, so it lures passengers into their planes with fake low prices. Customers discover only after they have bought the ticket that the total ticket price - including all fees - can be more than double the base price.

Inflight tipping

In 2016, the airline added a gratuity screen to the credit-card payment tablets. It is used when customers pay inflight for a variety of services ranging from blankets to drinks. The tips would be pooled...
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UK politicians prefer nice weather

Union JackThe UK is more and more resembling the USA. Admittedly, it is not (yet) a banana monarchy, but the Brits don't know what kind of Brexit they want. They only know what they do not want. Therefore, it is still very uncertain what will happen after the Brexit that should occur on March 29, 2019. It is not only uncertain how the Brexit will happen, but also whether it will occur at all.

Short term solution

Small wonder that the International Air Transport Association (IATA) calls...
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