KLM Royal Dutch Airlines will merge its two no-frills units - Basiq Air and Buzz - at the end of the summer to create a single company.
"We need to continue under a single name in order to maximise the brand and the business," new KLM CEO Mr Floris Van Pallandt reportedly told NRC Handelsblad.
Neither Buzz nor Basiq Air is profitable at present.
"That's quite normal, you need at least three years to start up," the paper quotes Mr Van Pallandt as saying.
