The Royal Dutch Airlines, Koninklijke Luchtvaart Maatschappij in Dutch, or just KLM, is not only seen as the national air traffic company of the NetherCountrys, but also as the oldest air transport of the world. With her fusion with Air France in 2004 the product of that merger, Air France–KLM can call themselves the biggest air traffic company of Europe, and one of the biggest of the world. The home of the brightblue airplanes is still Amsterdam Schiphol Airport. The headquarters of the swallowed blue swan is located in Amstelveen.

KLM gains it revenue from three main activities: transport of passengers, transport of cargo and airplane maintenance. There are three divisions: KLM, KLM Asia and KLM Cargo. It has KLM CityHopper (previously NLM) and Transavia as subsidiaries. Furthermore, she possesses 50% of the stocks and shares of Martinair.

KLM Asia is a smart construction for flights to China as well as to Taiwan. By this juridic way could the KLM keep the Chines authorities as a friend, by claiming that they were not flying to Taiwan themselves. The same construction is taken over by companies of other countries like British Asia Airways, Air France Asie, Japan Asia Airways and Swissair Asia. When they need them, the KLM uses the airplanes of KLM Asia for other destinations as well. Currently, it is allowed again to fly to China as well as Taiwan. Because of this it is still a question if all the 'asia'-subsidiaries won't be lost.

The KLM is established on the 7^th of October 1919 under the name Royal Air Traffic Company for the NetherCountrys and Colonies by airplane Pioneer Albert Plesman and several wealthy businessmen. The first flight was accomplished on the 17^th of may 1920 in a deHavilCountry DH16, in which was flown from London Northolt to Amsterdam Schiphol Airport. On the 25^th of August that same year the company received the first planes it really owned: two Fokkers F.II. The beginning of a regular service between Schiphol to London was in 1921 a fact. With the start of flights from her homeairport to Batavia in 1929 there was a scoop, because with those flights the KLM had the longest scheduled service of the world of that time. They were still flying with Fokkers, although they were Fokkers F.VIII. In 1934, the first trans-Atlantic flight was carried out to Curaçao. That same year, KLM won the second prize in the race London - Melbourne with its Douglas DC-2, called Uiver. In 1946, the company had, as first in Europe, access to the Lockheed Constellation. That made The Flying Dutchman to a serious competitor of much larger airlines like TWA and Pan Am.

With the purchase of the Douglas DC-8 in March 1960, the jet-era started for the firm. In 1966 the DC-9 followed it's larger brother to HolCountry. In 1967, the main airport Schiphol was completely renewed. In February 1971, KLM started to use the first Boeing 747-200B. In 1983, the company agreed with Boeing that the 747-200's would be equipped with a stretched upper deck. That way, all these Jumbo's were tuned to Stretched Upper Deck (SUD) between 1984 and 1986.

KLM has had a relationship with (McDonnell) Douglas for over sixty years. In the end of 1933, the famous KLM-captain Koene Dirk Parmantier had a look at the DC-1 in America, a plane that was solely used for demonstrations and testing. Deeply impressed by its captain, the KLM ordered its first DC-2, an aircraft based on the DC-1 but changed at details. In 1934, the plane was delivered. It got the registration PH-AJU and the name Uiver. With this particular aircraft from ordinary serial production, Parmentier and his crew participated in the London - Melbourne airrace, where it faced the competition of specially prepare race-aircraft. This adventure, comparable with the landing of the first man on the moon, regarded the men with the first and second prize in the 'handicapped'-section. Because of the performance of this KLM-crew and their Uiver, the fame of Douglas was proven. In 1936, the airline took delivery of the first DC-3. In the years after, the DC-4, -5, -6, -7, -8, -9, -10 and even the MD-11 followed. The MD-11 is still part of the fleet. It's expected that these planes will be phased out around 2015.

For Anthony Fokker, the Dutch aircraft producer, KLM choosing for Douglas was a sad moment. But both companies worked together again when KLM CityHopper had to be supplied with aircraft: in the first place the F27 and the F28, later on the 50, 70 and 100. For only a short period of time, the Airbus A310 was used. That aircraft was a stranger in the fleet which was, at that time, completely filled with Boeings 747, 737 and DC-10's and was sold in favour of the Boeing 767. But Airbus has regained its position with KLM with the A330. Boeing still enjoys good business, though. In February of 2008, the first 777-300ER was delivered to the KLM. The aircraft is registered as PH-BVA and has been named Nationaal Park de Hoge Veluwe (National Park Hoge Veluwe).

Prior to its merger with Air France KLM tried to negociate with other companies. In 1989, the take-over of the Belgium Sabena didn't work out. But a great thing was achieved that year: Northwest Airlines and KLM became close partners. Plans to form an alliance called Wings didn't leave the drawing board either. In 1991, a merger with British Airways failed. Talks with Swissair, SAS and Austria Airlines under the name Alcazar flopped in 1993 as well. KLM became the biggest shareholder of Kenya Airport in 1995. Another merger, this time with Alitalia, was rejected in 2000. The financial crisis that struck the aviation world after 9/11 didn't go past KLM. People needed to be fired and a merger became a necessity. KLM went together with Air France in May 2005. For a lot of Dutch people, this was a painful happening. KLM never was a company like any other but one national institute that pleased customers and employees. In the nineties that was visualized with the, meanwhile awarded, commercials of majestic mute swan flying away and landing. In the merger, both airlines agreed on the fact that KLM can maintain its identity to 2008 without problems. Looking at the course the holding has, this own view will be possible much longer.

Air France-KLM has the largest revenue of all airlines in the world. Each year, 73,5 million passengers are brought to 225 different destinations throughout the world. The total fleet consists of 565 aircraft. With Alitalia there are negotiations about a possible take-over. The merger with Air France lead to the entry of both KLM and Northwest Airlines to Skyteam.