Martinair Holland is offering itself for sale, preferably to KLM, the shareholders and board of directors announced June 21.

Acknowledging a failure to reposition itself through adjusting destinations, product and organization, the Dutch airline said it would begin immediately to work toward the goal of a single shareholder structure.

The supervisory board and the board of directors intend to launch a restructuring program leading to a long term sustainable operation, the company said.

Citing a healthy cargo operation, Martinair admitted that drastic improvements would be needed to sustain its long haul passenger business in the long term. But the short haul passenger business can not meet high unit costs and face the fierce competition, so the company will exit the market.

Martinair will look at the sustainability of other activities and will either divest them or keep them where outsourcing is not possible or justified, the company said.

Layoffs will be necessary, but the company did not reveal the numbers.