• 

  KLM

  IATA/ICAO Code:

  KL/KLM

  Airline Type:

  Full Service Carrier

  Hub(s):

  Amsterdam Schiphol Airport

  Year Founded:

  1919

  Alliance:

  SkyTeam

  Airline Group:

  Air France-KLM

  CEO:

  Marjan Rintel

  Country:

  Netherlands

In May, it was announced that the then Chief Executive Officer of KLM, Pieter Elbers, would succeed IndiGo's outgoing leader, Ronojoy Dutta, who was looking to retire after guiding the low-cost carrier through the turbulent pandemic period. The succession was scheduled for September 30th, but Dutta ended his tenure earlier after a mutual agreement with IndiGo.

According to IndiGo, on August 30th, Dutta accepted an enhanced non-compete for two years against the initial one year, balanced against an accelerated bonus and payment in lieu of stock options. The non-compete clause also meant that Dutta could not engage with any business or allied business in the Indian aviation industry. IndiGo commented in an exchange filing:

“It may be noted that as per the original terms of appointment Mr Dutta was required to serve six months’ notice. However, at management’s request, he agreed to be relieved by serving 4.5 months of notice, hence foregoing 1.5 months of notice pay."

Given the slight schedule change, Elbers came to India on August 4th and participated in IndiGo's 16th-anniversary celebration. Since then, he has been working alongside Dutta as part of the handover process until Dutta was officially relieved of his duties on September 5th. Elbers officially assumed his new leadership role with India's largest airline the following day, almost three weeks earlier than contemplated.

An aviation industry veteran

With a Bachelor's degree in logistics management and a Master's degree in business economics, Elbers is a veteran in the aviation industry with more than 30 years of experience at the Dutch national carrier, KLM. His aviation career started in 1992 when he joined KLM at its Schiphol hub and, subsequently, various managerial positions in the Netherlands, Japan, Italy, and Greece.

After returning to the Netherlands, Elbers was appointed as the Senior Vice President of Network and Alliances, before being promoted to Chief Operating Officer and President of the airline in 2014. He also served as a member of the Executive Committee of the Air France-KLM Group. During his time with KLM, he turned the Dutch carrier into a financially healthy, vital, and innovative airline of enormous national and international value, mainly due to its extensive network.

Head-hunted for his abilities

Given his successful career of developing international hubs and connectivity, the board of IndiGo has high expectations of Elbers, who was head-hunted for how he restructured KLM during the pandemic. As the fourth Chief Executive Officer of IndiGo, Elbers will face many challenges. Unstable fuel prices and inflation affecting the Indian rupee continue to pose a consistent threat for IndiGo, especially in guiding the airline through more significant and quicker expansions into the international market.

IndiGo has long been considering opting for widebody aircraft for long-haul international flight operations. While the widebody discussions have not been fruitful in the past, the airline has created a strong network of medium to short-haul global routes using its narrowbody aircraft. The low-cost carrier had previously made it clear that it would have already advanced substantially in the international market if it were not for the pandemic.

Cost-control will also be a priority area for Elbers, which includes digitalization for increasing revenue and improving the experiences for passengers and employees. The new CEO also needs to ensure the consolidated losses keep narrowing as the quarterly revenue increases. However, the airline is currently facing supply chain constraints while expanding internationally and trying to cut costs, so navigating through delays in aircraft and engine delivery will prove challenging.

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