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The flagship carrier of the Netherlands is KLM-Royal Dutch Airlines, hosting a main hub at Amsterdam’s Schiphol Airport and headquartered in nearby Amstelveen. Offering both domestic and international service, KLM-Royal Dutch airlines serves over 90 destinations, and is also a member of the world’s second largest airline alliance, SkyTeam.

KLM-Royal Dutch is part of Air France-KLM and also has an operating partnership with Northwest Airlines of the United States. The entire KLM group carries almost 75 million passengers annually, operates a fleet in operation of 607 aircraft, and serves 258 destinations worldwide. Air France-KLM recently purchased a 25 percent stake in the Italian airline Alitalia.

KLM-Royal Dutch is the world?s oldest airline and was founded in 1919. KLM-Royal Dutch operated its first flight in May 1920 from London to Amsterdam. The airline stopped operating during World War II. KLM-Royal Dutch Airlines has been accused of helping Nazi war criminals flee Germany after World War II, a charge the company denies.

Air France and KLM announced their plans to merge in 2003, marking the end of the oldest independent airline in the world. However, the merger did not impact KLM’s long time partnership with United States based Northwest Airlines, as both companies joined the SkyTeam alliance in September 2004.

KLM gifts its long-haul first-class and business passengers with small Delftware, blue-and-white porcelain reproductions of old Dutch canal houses. The houses are filled with Dutch liquor. This practice started in 1952. There are now 88 Delftware houses as of 2008 (the airline?s age that year). A new Delftware house is added each year on October 7, the anniversary of the airline?s founding.

KLM?s frequent flyer program is called Flying Blue. Flying Blue members can earn and spend mileage points on flights and services of Air France-KLM, other companies of the SkyTeam airline alliance and assorted other financial, travel, and transportation companies. Flying Blue contains four membership levels ? Ivory, Silver, Gold and Platinum. Level miles are gained by taking any flights with an AF or KL code or flights operated by one of SkyTeam’s airline companies under the code of any other SkyTeam airline, or flights operated by Kenya Airways, which is a Flying Blue partner.

KLM?s past success isn?t protecting the airline from a bumpy future. The airline recently announced it will cut up to 2,000 jobs due to lower ticket sales and lower cargo volumes. The cuts represent three percent of the KLM workforce. KLM also plans to reduce its airline capacity by two percent in summer 2009. KLM lost $653 million dollars in the quarter ending December 31, 2008. Airline officials say they haven?t ruled out future cuts or reductions as they look to stabilize their business and return the airline to profitability.

An airline watchdog group based in Australia, the Australian Competition and Consumer Commission, announced in February 2009 that it is suing Air France-KLM over price fixing allegations. KLM denies the charges and will defend against the suit. British Airways and Qantas were recently fined $5 million and $20 million over similar price fixing allegations.