KLM set to get bigger
Posted on: 17 December 2008
Dutch national carrier KLM has announced that it is to expand by buying up the remaining shares in low-cost airline Martinair.KLM says the move, which was approved by the European commission today, will be good news for customers looking to book cheap flights as expand the airline's network and the range of services it can offer to its clients.
Paul Gregorowitsch, chief executive of Martinair, welcomed the move saying it is encouraging news for Martinair and its employees.
Peter Hartman, the president and chief executive of KLM, said: "With the European commission approval, economies of scale and synergies become available."
Economies of scale brought about by such airline mergers could lead to passengers finding cheap flights are more readily available.
Both KLM and Martinair already operate cheap flights to Holland, which could become even cheaper following the buyout.
Recently it was announced that British Airways is in talks about a possible merger with Iberia, Spain's national carrier.
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