There are more opportunities than challenges in India: KLM CEO Marjan Rintel

The Netherlands’ flag carrier KLM will expand its operations in India by starting flights to Hyderabad in September, president and CEO Marjan Rintel said in an interview to Mint. The airline will deploy Boeing 777s on the Amsterdam-Hyderabad route, its fourth connection to India. 

Rintel also said she was impressed by the growth of India’s aviation market, and that the airline would invest more in India. KLM expects demand to increase and IndiGo to remain a partner despite its plans to start direct flights to Europe, she added. 

KLM has been flying to India for many decades. What opportunities do you see for expanding operations? What’s your outlook on the Indian market?

KLM has been in India for the past 70 years, and we are investing in India in terms of destinations. The relationship between the Netherlands and India is important, so we always look for opportunities. We will start operating flights to Hyderabad in September. This will be our fourth destination in India as part of the Air France-KLM Group, codesharing with Indigo.

Also read | Company Outsider: Don’t blame duopoly for the poor service and high fares by Indian airlines

India is a booming market. With a growing middle class, more people want to fly, and that’s what we see today. A lot of businesses from the Netherlands are flying to Hyderabad, so this market will also be important from a cargo perspective. Demand has doubled in comparison to pre-covid, and we will look at more options based on the demand. 

Do you see any challenges in the Indian market? How do you plan to invest more here?

There are more opportunities than challenges in India, but of course we’ll always need to overcome challenges in terms of regulations and entrance approvals. But there are opportunities in terms of the growing market, and our long-term relationship makes it possible for KLM to invest in India.

Also read: Why MakeMyTrip’s CEO sees India’s soaring aviation sector hitting a road bump

We are investing not only in terms of destinations and frequencies, but also in our long-term relationship with TCS (Tata Consultancy Services). We are their oldest European customer, with a relationship dating back 30 years. TCS has supported us in our digital transformation. We really value the long-term relationship and the trust we have built between ourselves, and that’s why I feel there are more opportunities than challenges.

Your codeshare partner IndiGo is reportedly planning to fly to the Netherlands and other parts of Europe. Do you believe Indian airlines will give you tough competition?

The Indian market is growing rapidly, which is impressive. I understand that IndiGo is taking the initiative to fly to certain destinations within Europe. But as Air France-KLM, we have a long-lasting relationship. We will invest in India. IndiGo has been our codeshare partner, and we have had the advantage of working together. That is what we see today, and we will keep seeing that. 

Are there any requests to the Indian government to make it easier to fly to India?

First of all, we recognise and appreciate our long-term relationship in India. We are investing in India by opening new destinations and frequencies, holding the relationship with TCS, etc. There are always challenges that you need to overcome to make it easier for tourists from abroad to enter India. India has much to offer, including beautiful places. But if we compare tourism in India with other places, for example Dubai, a lot can be done on that end.

Are your flights to India profitable?

I can’t give any specific numbers, but look at it this way: we are expanding operations to India. The market is growing in terms of passengers, and India’s economy is growing, so people will spend more on tickets. Airlines look for profitability by definition, but the key here is the fleet. 

Also read: IndiGo bets on overseas flights for growth

A modern fleet helps to save costs, a new fleet is more profitable than an old fleet, and we did invest a lot in inducting the Boeing 777, which we will also fly to Hyderabad. We will focus on giving our passengers comfort through premium products. Our premium product is the most appreciated class at KLM, and it is always booked.  

Are you looking to increase hiring from India?

Yes, we are looking for a lot of people, especially engineers and technical staff. The bilateral agreement between Europe and India needs to make it easier for people to work abroad; they need to look at various regulations and other challenges.