ACM: KLM should not interfere with growth opportunities at Schiphol
KLM and Schiphol Airport no longer have contact about the growth opportunities of other airlines. Schiphol independently determines its plans for investments, rates and marketing policy. KLM and Schiphol have promised this to the Netherlands Authority for Consumers and Markets (ACM).
This creates a level playing field for competition at Schiphol. KLM and Schiphol acknowledge that there were contacts that entailed competition risks. The commitments mitigate these risks. ACM has not established a violation.
What are the commitments?
KLM and Schiphol have made concrete commitments to ACM:
- KLM and Schiphol will have no contact with each other about limiting the growth opportunities of other airlines.
- Schiphol itself determines its plans for investments, airport charges and marketing policy.
- KLM and Schiphol are open about any mutual contacts and record them. This allows ACM to check the contacts and their contents.
- KLM and Schiphol will not have any contact about requests for bases, lounges or other specific facilities from other airlines. Contact about this is only possible if the other airline gives permission for this.
- Schiphol independently assesses applications from airlines.
What was going on?
KLM and other airlines of the partnership of international airlines 'SkyTeam' handle most of the air traffic at Schiphol. KLM and Schiphol therefore have regular contact with each other about the use of the airport.
Research by the ACM showed that KLM and Schiphol also discussed that KLM and its partners provide about 70 percent of air traffic and the other airlines about 30 percent.
KLM and Schiphol discussed Schiphol's plans. For example, KLM appealed to Schiphol for facilities from other airlines, including a home base for easyJet and a business lounge for Emirates.
KLM and Schiphol also discussed that Schiphol should take KLM's position into account in its investments, airport charges and marketing policy.
Such contacts created the risk that Schiphol would not determine its policy independently, but would adapt it to KLM's wishes. For example, other airlines may have been thwarted in their growth plans.
Why these commitments from KLM and Schiphol?
The commitments are good for a level playing field between airlines at Schiphol. Passengers benefit from competition between airlines: more destinations, lower ticket prices and better facilities. As a result, Schiphol Airport can maintain its international position and be attractive for passengers to fly via Schiphol. This contributes to an extensive network of destinations for Dutch travelers and ample transfer options for travelers from abroad.
ACM is now making the commitments available for inspection for 6 weeks so that interested parties have the opportunity to respond to them.
Yes, it is logical that those agreements must be made. The companies in the Middle East, for example, do not do that either. The Netherlands must remain the best boy in the class.
In my opinion, respecting your own national and European rules of the game is wiser than slyly raping the self-made rules to take a bite here and there at the expense of us air-travelling consumers. In that sense, this effort to reduce conflicts of interest is a step in the right direction.