Shortly after its founding, KLM was labeled a ‘kingdom’, as the book indicates Blue Fable by investigative journalist Ties Joosten. To be with a title like that condition related, but this company does not comply.Tweet

One of the most important requirements is the financial health of a company. This is sorely lacking at KLM – shareholder equity is still negative on the most recent publication of annual figures. Financial analysts call companies with negative equity ‘technically bankrupt’.

Air France-KLM’s parent company has been disrupted by a negative equity. At the end of 2020 it was 12.70 euros per share – for a share value of less than 5 euros at the time, at the end of 2021 it was minus 6.60 euros (share value 2.50 euros) and at the latest reference point at the end of the year fiscal 2022 minus 1.17 euros per share. Despite being injected with billions by the French and Dutch governments.

State aid every 10 years
Moreover, KLM’s financial problems are structural in nature. The book by journalist Joost shows that on average once every ten years companies run into problems so serious that government support is necessary to survive.

But there are other conditions, as can be read on the Royal House website. “Companies must be prestige in terms of nature, size, and reliability.” Recently it turned out to be crystal clear latest interim report from state agent Jeroen Kremers who was quite disappointed with that reliability.

Kremers stated in his report that KLM did not live up to the agreement and that the annual report it presented was “misleading” in several respects. State agents also expressed great concern about the company’s financial viability.

Perfect business management is required
Another requirement set by King Willem-Alexander for a company that bears the title of ‘kingdom’ is that it must have ‘perfect business operations’.

This is not the case at KLM, as has been reported many times. The company was found not to have complied with the agreement, having known for at least fifteen years that its employees work in carcinogenic exhaust gases and cause a huge amount of noise and pollution, although tolerated for years, is absolutely illegal according to laws and regulations, judges confirmed early last week. With the emission of substances of particular concern – such as lead from the KLM flight school in Eelde – they pose a risk to the health of people living and working at the airport.

The royal company must “behave impeccably”, the site says. You said it yourself, when you consider the breaches, the missed deals, the almost hysterical reactions to political developments, the lawsuits against democratic decisions, the convictions for fraud by the Advertising Code Committee. Did KLM then ‘impeccably behaved’? To ask a question is to answer it.

Branches of foreign multinational companies
And then we come to the final state where KLM colors outside the lines. When oil producer Shell moved to England, it lost its prestige. But KLM became part of the French company Air France-KLM twenty years ago and still carries the Royal name. King’s website reports that “foreign multinational company establishments” can never use the title.

KLM no longer meets the applicable requirements for appropriations in a number of ways. Allowing a company to continue to carry the seal undermines its value. This has a negative impact on companies that do meet the requirements and damages the image of the Royal House itself. It was an unwanted situation that could easily be ended.

The official request to revoke KLM’s ‘kingdom’ title was submitted by SchipholWatch together with the residents’ association BTV Rotterdam, Eelde Airport residents association (VOL), it PleinAir Maastricht AllianceThat Shrink the Aviation Coalition and population groups SOS Zaanstreek sent to the Royal House and the Senate and the House of Representatives.

Update July 15, 23:00
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