Dutch airline KLM has announced a restructuring to contain rising costs, involving 2,700 job cuts - but analysts voiced some scepticism over the plans.

The restructuring includes the jobs reduction, an expected 5 per cent capacity cut in KLM'S winter schedule, and tariff increases.

Predicting continued over-capacity at least throughout the summer, KLM expects the rationalised route network and enhanced yield to save it 200 million guilders Another 500 million guilders will flow in during the financial year 2000/01 as a result of the job cuts and lower IT investments, it said.