KLM is pruning its long-haul and short-haul route networks and withdrawing, leasing out and redeploying aircraft as it fights to restore profitability. The move will sweep away the 3-4% capacity growth planned for this year's high season, with capacity now remaining static.

From 26 March, KLM will stop long-haul services from Amsterdam to Karachi in Pakistan, the Saudi Arabian cities of Riyadh and Jeddah, Baku in Azerbaijan and Santiago, Chile. Short-haul flights to London Gatwick and Switzerland's Basle Mulhouse Airport will terminate on the same date, with services to Kristiansand in Norway stopping on 3 July.

In parallel with the network rationalisation, KLM plans fleet cuts, with a Boeing 767-300ER having been leased to Kenya Airways (to replace the crashed Airbus A310) and a Boeing 737 to 80%-owned Transavia Airlines. Two Fokker 70 regional jets will be transferred to KLM Cityhopper, with an unspecified number of Fokker 50 turboprops to be withdrawn. Other aircraft will be redeployed on more profitable routes.

KLM says it will "scrutinise all non-operational activities for their value-generating performance and potential", and that further measures, including plans for the 2000/1 low season, will be announced next month. KLM made a DFl39 million ($17 million) net loss in its last quarter and has announced 3,000 job losses.

• KLM and Curacao-based Air ALM are to end joint operation of flights between the Netherlands and the Dutch Antilles from 1 April next year after the signing of a new, liberalised, air services agreement between the two territories.

Source: Flight International