The objective of this report is to gain an understanding of how this international airline is strategically managed to gain maximum profit from it own fleet and through members of its alliance. This particular airline was chosen first because we had some previous knowledge of them and their alliance with Northwest Airlines. It will be interesting to find out what steps they are taking to fulfill their mission statement of, "Striving to attain excellence as an airline and by participation I the world's most successful airline alliances, KLM intends to generate value for its customers, employees, and shareholders."".
On October 7, 1919 the foundation of KLM Royal Dutch Airlines was established for the Netherlands and Colonies. May 17, 1920, was their first flight. The route was London to Amsterdam and the aircraft was a De Havilland DH-16. October 1, 1924, was the first intercontinental flight between Amsterdam and Batavia. December of 1934 was the first transatlantic flight between Amsterdam and Curaco. May 21, 1946 was the first flight of the scheduled service between Amsterdam and New York. There first jet service was introduced in the Douglas DC-8 in March of 1960. Their present base at Schiphol Center was utilized in April of 1967. February of 1971 was the introduction of the Boeing 747 to KLM airlines. KLM took an important step towards being a global airline by acquiring a 20% share in Northwest Airlines. In December of 1991 they introduced the first frequent-flyer program of Europe under the name of "Flying Dutchman."" In January 1993, the US Transport Ministry grants KLM and Northwest official anti-trust immunity that allowed both airlines to intensify cooperation. By September of that same year all flights between the US and Europe were operated as a joint venture. September 1997, KLM and Northwest sign long-term commercial and operational cooperation agreement; KLM sells its shares back to Northwest.