KLM Royal Dutch Airlines is on the very brink of survival after the Dutch government has promised to halt remaining payments to the airline following the firms pilots refusal to accept pay freezes.
The airline is currently facing the worst crisis of its 101-year history and had requested its well-paid pilots to take a pay freeze until mid-2025. The pilots have refused to accept those terms leading the government to pull the plug on any more payments or guarantees to KLM from the massive bailout that had previously been agreed.
In recent months intensive negotiations have taken place between the airline and trade unions representing cockpit, ground and cabin staff. Some agreements are already in place, however, the government has stipulated that agreements must be valid for the whole period of the loans - mid 2025. Whilst most ground and cabin crew unions have either accepted the deal or are considering it, pilots union VNV has not signed this deal, putting the whole bailout in jeopardy.