Professional Documents
Culture Documents
A Case Analysis
BY Team No : 10 APSL 01 , IIM Lucknow Mumbai 28.09.2013 1. Meka Manga Rao 2. G.Satyanarayana 3. Sandeep Mahimkar 4. Prashant Thakur 5. Sushant Roy 6. Ankur Sharma 7. Harmeet Singh
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1919
1946 - 50
Dutch Govt. buying into KLM and listing in US stock exchange
Late 1980s
Main objective during 1980s: Creating hub & Spoke system in Schiphol Increase mkt. share to sustain competition against big competitors Offering services from secondary cities to Schipol
Virtual JV between KLM & NW Airline Enhanced code sharing. Assets owned separately.
1989
1992
KLM & NW Airlines signs commercial agreement to operate as Seamless One Airline
1993
Objective: To overcome antitrust competition law and push for deregulation to allow flights between US & Netherlands
Resignations of 3 KLM executives and 2 lawsuits filed by KLM on NWA. Negotiation process started
1996
1994-97
KLM attempting takeover of NW Airline. Poison Pill adopted by NW Airline Revenue contribution in the Alliance : KLMs = 3 times NW Airline. This Alliance gave KLM 30% of its profit
1997
Contribution margins was splitted 50:50. Exit clause included in contract
1997-2000
April 2000: KLM pulled out of alliance as Malpensa-Milan airport being developed as major hub and delay in privatization process. KLM paid 250m Euro to Alitalia
2000
Attempt of Alliance with British Airways: KLMs ownership being 26% in merged entity. Called off due to disagreement in KLM brand and national identity
2001
We learned thats not the way to do it because there were many issues with Malpensa and other local airports.
Some of the problems were naturally outside of the control of Alitalia, but perhaps at that time , KLM misjudged its ability to implement such a quick integration. However on a positive note ,KLM was able to restore its operations after the de-merger. Within a month things were pretty much back to normal.
Screening
Scoping
Contracting
Screening results of Memorandum of Commercials possible Partners. Understanding ( MoU). Agreement In other cases, airlines Targets for Negotiation. Agreements cover the approach KLM directly Legal staff would be scope of the to propose the brought in to identify partnership, the possibility of working any legal and crossresponsibilities of both together border issues. sides, the governance Main Targets for structure, renewal, Alliance Exit clauses and Choice of Partner termination.
implementing involves Stringent review od putting the contract into Business Results . action and working Going for additional through the necessary Agreements to resolve changes to kick-start the specific issues. cooperation Inviting the staff of Specifications fully other Airline to implemented. develop the Changes to organisation, relationship. Processes ,etc
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