On Thursday it seemed as if the role of Pieter Elbers had already been played out at Air France-KLM. Elbers sat behind one of the four white desks during the online presentation from Paris, but did not speak and stayed out of the picture.
Only CEO Ben Smith and financial director Steven Zaat provided an explanation of the annual figures. In other years, Elbers and Air France colleague Anne Rigail were also allowed to say something. Smith also said nothing about the announced departure of Elbers, who will leave KLM in mid-2023, or about his successor. “It is customary for the chairman of the board and the financial director to speak,” Elbers said by telephone from Paris. “Anne and I had no active role.”
You guided KLM through the crisis, but you cannot now reap the benefits of the recovery. Is that sour?
“After two positive quarters, the road to recovery has started. Bookings are picking up again. Already in 2022 there is a great opportunity to consolidate that recovery.”
The better-than-expected figures are mainly due to significant budget cuts? “At the start of the pandemic, we quickly implemented cost savings: parked the 747s, put in place a voluntary severance package, assertively did things to cut costs. I wanted to quickly create a good foundation for if the recovery should come.”
The government support helped you through the crisis. But does it feel more like a rock than a life preserver now?
“At the beginning of 2020, we went from 120,000 to 4,000 passengers per day from one moment to the next. We had no idea which way it would go. Back then, the support was a lifeline. That was true for all aviation. However, the support is rightly subject to strict conditions. These are drastic and that is why we want to repay the loans as quickly as possible.”
The conditions cover, among other things, lowering salaries and flying more sustainably.
The Dutch cabinet has appointed a state agent to monitor whether KLM complies with these conditions. In his recent report, he stated that KLM should make more cutbacks and possibly focus more on Dutch passengers and less on switchers. What do you think of that?
“The state agent monitors compliance with the conditions. That is the right of the government. It’s about tax money. And we will adhere to all conditions as best we can. But it is important that KLM maintains its earning capacity. That is still successful.”
“Kremers says that we are on the right track with our cost savings, but the situation in aviation is now so uncertain that I cannot predict how much we should save in 2024. We are dealing with cost increases from suppliers, such as Schiphol, which wants to increase airport charges by 37 percent, and with inflation. Against that background, it is complicated to look three years ahead.”
You are always seen as the guardian of Dutch interests at Air France-KLM. Should the Netherlands be concerned now that you are leaving and Paris may want to force more integration of the two companies?
“It is true that I have had the necessary discussions in the group in recent years. But you should always be nuanced. In a number of areas we are much more integrated than other aviation groups. Bee revenue management [de afdeling die ticketprijzen vaststelt] for example, we work fully together. The order for the new aircraft is also a good example.”
In the coming years, Air France-KLM will buy one hundred Airbus A320/A321 aircraft for KLM and Transavia, with an option for another sixty.
You will say goodbye to KLM in mid-2023 after a career of thirty years. What are you going to do? Can you imagine a life without aviation?
“I really like aviation. And I get a lot of satisfaction from managing the wonderful people at KLM. From organizing our centenary to the crisis management of the last two years. But I don’t know what I’m going to do next.”