KLM has announced a substantial expansion of its low-cost subsidiary, buzz, so as to compete with EasyJet and Ryanair in the fast-growing low-cost airline market. A second hub will be opened at Bournemouth in March, and a third at another UK airport later in the year. The airline’s eight BAe 146-300s will not be part of the expansion, however, as they are slated to be replaced by Boeing 737s as leases expire. buzz is being split off from KLM uk, which will be merged with regional subsidiary KLM CityHopper. buzz will continue as a separate company, under KLM uk’s AOC. The split is causing considerable dismay among KLM uk’s flight crews, who are being forced to choose which side to stay with, many under substantially less attractive terms. A strike is being threatened.
Recent news items on buzz:
- Ryanair’s Buzz Stansted subsidiary returns to the air (2003-05-05)
- End of the line for buzz (2003-04-02)
- Ryanair takes the axe to buzz (2003-02-27)
- Ryanair buys buzz (2003-02-05)
- buzz to replace BAe 146s as leases expire (2002-09-05)