KLM goes low-cost?

KLM have announced that from 01 January 2005, they will cut fares to every one of their European routes (currently 66) from their Amsterdam base; the average price cut will be around 40%.

They are doing this in a move to compete more effectively with low-cost carriers who are rapidly taking over the European market for air travel. KLM will continue to offer complementary food and drink to their passengers, although will be altering their cost structure. For the meantime, it looks like they will not become a true budget airline.