Air France–KLM

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Air France-KLM S.A.
Type Société anonyme
Traded as EuronextAF
OTCQXAFLYY
Industry Aviation
Founded 2004
Headquarters Roissypôle
Paris–Charles de Gaulle Airport
Tremblay-en-France, France
Key people Jean-Cyril Spinetta (Chairman and CEO)[1], Peter Hartman (Vice-Chairman)
Products Passenger flights (Air France, KLM, HOP!, KLM cityhopper, etc.)
Cargo activity (European Cargo House)
Aircraft maintenance
Catering (Servair, etc.)
Services Airline services
Revenue Increase 25.63 billion (2012)[2]
Operating income Increase €-300 million (2012)[2]
Profit Decrease €-1.19 billion (2012)[2]
Total assets Increase €27.47 billion (2012)[2]
Total equity Increase €6.906 billion (2011)[2]
Employees Decrease 100,744 (2012)[3]
Website www.airfranceklm.com/en/

Air France–KLM (EuronextAF) is a Franco-Dutch airline holding company incorporated under French law with its headquarters at Paris–Charles de Gaulle Airport in Tremblay-en-France, near Paris. The group has offices in Montreuil, Seine-Saint-Denis, Paris, and in Amstelveen, Netherlands.[4][5]

Air France–KLM is the result of the merger in 2004 between Air France and KLM.

In 2008, it was the largest airline company in the world in terms of total operating revenues, and also the largest in the world in terms of international passenger-kilometres. The company's CEO since 17 October 2011 is Jean-Cyril Spinetta.[1]

Both Air France and KLM are members of the SkyTeam airline alliance. They offer a frequent flyer programme called Flying Blue. The company's namesake airlines rely on two major hubs: Paris–Charles de Gaulle Airport and Amsterdam Airport Schiphol.

Air France–KLM Airlines transported 78.45 million passengers in 2013.

History[edit]

Air France–KLM was created by the mutually agreed merger between Air France and Netherlands-based KLM on 5 May 2004.

As a result of the deal, the French government's share of Air France was reduced from 54.4% (of the former Air France) to 44% (of the combined airline). Its share was subsequently reduced to 25%, and later to 18.6%.

At the time of the merger in May 2004, Air France and KLM combined offered flights to 225 destinations in the world. In the year ending 21 March 2003, the two companies combined transported 66.3 million passengers.

In October 2005, Air France Cargo and KLM Cargo, the two freight subsidiaries of the group, merged their commercial activities. The Joint Cargo Management Team now operates the organisation worldwide from the Netherlands.

In a 2007 opening for a majority takeover of the loss-generating Alitalia, Air France–KLM was one of three bidders, and was favoured by the board of Alitalia.[6] However, on 2 April 2008, it was reported that negotiations have been abandoned.[7] After the acquisition of Alitalia and Air One by Compagnia Aerea Italiana on 12 December 2008, Air France–KLM was interested once again in purchasing a participation in the new merged company. On 12 January 2009, Air France–KLM bought a 25% share in this company for €323 million.[8]

February 2011: Air France–KLM with Delta Air Lines are working together to examine a bid for Virgin Atlantic. At the present Richard Branson has 51 percent stake of Virgin Atlantic and the rest is held by Delta Air Lines.[9]

Air France–KLM was categorized as one of World's 10 safest airlines in August 2011.[10]

The company cancelled its flights to Iran as of April 2013.[11]

In December 2013, Air France–KLM sold its subsidiary CityJet to Intro Aviation.

Potential negotiations with Japan Airlines[edit]

Air France–KLM, along with its partner Delta Air Lines, were in talks about investing with Japan Airlines, which is part of the Oneworld alliance (rival to SkyTeam) but is experiencing financial problems. Air France–KLM, along with Delta and Delta's rival American Airlines (AMR Corporation; part of Oneworld) discussed investments for a sum of $200–300 million to help the financially struggling carrier, which is Asia's largest airline by revenue. The Ministry of Land, Infrastructure, Transport and Tourism of Japan had recommended Air France–KLM and/or Delta for being partners because of their "healthy" financial status compared to AMR Corporation.[12][13] Delta was also recommended because of its extensive Asian network acquired through the acquisition of Northwest Airlines; Korean Air, also a SkyTeam member, was also in talks with JAL on the negotiations. Air France, Alitalia, China Airlines, China Southern Airlines, Korean Air, and Vietnam Airlines are SkyTeam members that currently have codesharing with JAL.

On 7 February 2010 several news outlets reported that JAL will decide to keep its alliance with American Airlines and end talks with Delta. New JAL CEO Inamori and ETIC officials, according to the reports, decided that switching alliances (from Oneworld to SkyTeam) would be too risky and could hinder JAL's ability to turn around the airline quickly.

On 9 February 2010 JAL officially announced their decision to strengthen its partnership with American, which includes the joint application of antitrust immunity approval on transpacific routes. The airline will also fortify its relationship with other partners in the Oneworld alliance.[14]

Financial details[edit]

In May 2010, Air France–KLM announced increased losses (€1.56 billion for the year to 31 March 2010), and warned that the 2010 eruptions of Eyjafjallajökull had caused a further €160 million loss in the current financial year.

Air France–KLM is one of the largest airline companies in Europe, with 204.7 billion passenger-km in the year ending 31 March 2011.[15]

Private shareholders own 81.4% of the company with 37% held by former Air France shareholders and 21% held by former KLM shareholders. The Government of France owns the remaining 18.6%.

In June 2008, Air France–KLM agreed to pay $350 million to settle charges of cargo price fixing in an investigation conducted by the U.S. Justice Department. Cathay Pacific, Martinair Holland, and SAS Cargo Group also agreed to fines bringing the total to $504 million.[16] In November 2010, the European Commission fined Air France–KLM €310 million following another price-fixing investigation.[17]

The company spends about a third of its revenue on staff, its biggest expense, while Lufthansa only spends around a quarter, so to save around 800 million euros (app. 1.04 billion US$) annually over the next three years, the company will make a recruitment freeze which will lead to 2,000 job cuts in 2012.[18]

In February 2014, Air-France KLM invested $100 million in Brazilian airline Gol Linhas Aéreas Inteligentes in advance of the 2014 football World Cup.[19]

Subsidiaries[edit]

Air France–KLM

Wholly owned[edit]

Wholly owned subsidiaries of Air France–KLM include:

Air France–KLM also owns Cobalt Ground Solutions a ground handling company based in London Heathrow Airport. The company was formed on 1st April 2009 by merging the two ground services subsidiaries of Air France and KLM in the UK – formerly Air France Services Ltd (AFSL) and KLM Ground Services Ltd (KGS).

The group also owns Cygnific which is one of the biggest Sales & Service Centres of Air France-KLM. Cygnific is actually a full subsidiary of KLM Royal Dutch Airlines, operating as an independent company with its own business strategy, operational processes and human resources policy. Cygnific serves passengers and travel agents on behalf of KLM, Air France and Delta Air Lines.

Minority interests[edit]

Airlines in which Air France–KLM owns a minority interest:

Former subsidiaries[edit]

  • Republic of Ireland Cityjet: Air France-KLM used to own the entire company, until the sale to Intro Aviation, a German aviation holding company.

Fleet[edit]

The fleet of Air France–KLM includes the fleets of its subsidiaries, the fleet of Air France incl. Air France Cargo (251), and the fleet of KLM incl. KLM Cargo (117). Furthermore the fleets of HOP! (101), KLM cityhopper (48), Transavia.com incl. Transavia France (45) and Martinair Cargo excl. leases from KLM Cargo (6) are fully part of the company. The total number of planes in the fleet is 568 as of September 2014, this is including a cargo fleet (Air France Cargo, KLM Cargo and Martinair Cargo) of 14.

Air France KLM Passenger & Cargo Fleet
Aircraft In fleet Orders Passengers Airline Notes
F C Y+ Y Total
ATR 42–500
15
48
48
HOP!
ATR 72–500
10
70
70
HOP!
Airbus A318-100
18
-
132
132
Air France
Airbus A319-100
41
var.
var.
142
Air France
Airbus A320-200
46
3
var.
var.
178
Air France 5 stored;
5
-
180
180
Transavia.com France
Airbus A321-200
25
var.
var.
212
Air France
Airbus A330-200
15
40
21
147
208
Air France
12
30
31
182
243
KLM
Airbus A330-300
4
-
30
40
222
292
KLM
Airbus A340-300
13
30
21
224
275
Air France To be phased out by 2016
Airbus A350-900
18
TBA
Air France Deliveries from 2017 onwards
7
TBA
KLM Deliveries: 2019 (2), 2020 (2), 2021 (2), 2022 (1)
Airbus A380-800
10
2
9
80
38
389
516
Air France
Boeing 737-700
18
20
12
90
122
KLM
9
149
149
Transavia.com All phased out by 2015
Boeing 737-800
25
20
24
120
164
KLM Delivery: 2014-05
27
9
189
189
Transavia.com
14
189
189
Transavia.com France
Boeing 737-900
5
28
18
132
178
KLM
Boeing 747–400
7
36
396
432
Air France To be phased out by 2016
7
35
36
337
408
KLM
Boeing 747-400M
15
35
36
197
268
KLM
Boeing 777-200ER
25
4

49
40
33
24
24
24
174
216
250
251
290
307
Air France All to be reconfigured to 290 seats lay-out by 2015
15
35
34
251
320
KLM
Boeing 777-300ER
37
3
8

67
14
42
28
32
24
200
422
317
303
468
383
Air France
8
5
35
40
350
425
KLM Deliveries: 2015 (2), 2016 (2), 2017 (1)
Boeing 787–9
12
TBA
Air France
23
30
48
216
294
KLM Deliveries: 2015 (2), 2016 (9), 2017 (5), 2018 (2), 2021 (1), 2023 (2), 2024 (1)
Bombardier CRJ100ER
10
50
50
HOP! 5 stored
Bombardier CRJ700
15
70
70
HOP! 2 stored
Bombardier CRJ1000
13
2
100
100
HOP!
Embraer 135
5
50
50
HOP! All stored
Embraer 145
20
50
50
HOP! 2 stored
Embraer E-170
16
4
76
76
HOP!
Embraer E-190
10
2
100
100
HOP! 2 to be sold to KLM Cityhopper
28
2
100
100
KLM Cityhopper 2 to be acquired from HOP!
Fokker 70
20
80
80
KLM Cityhopper
McDonnell Douglas MD-11
3
24
38
229
285
KLM To be phased out by 2014-10
Cargo Fleet
Boeing 747-400ERF
4
N/A
Air France Cargo 2 stored; to be phased out by 2015
4
N/A
KLM Cargo All leased to Martinair Cargo; 1 to be phased out by 2015
Boeing 777F
2
N/A
Air France Cargo
McDonnell Douglas MD-11F
6
N/A
Martinair Cargo To be phased out by 2016
Total
582
92
16 stored

Head office[edit]

Head office of Air France–KLM in Roissypôle

Air France–KLM's head office is located in the Roissypôle complex on the grounds of Charles de Gaulle Airport and in Tremblay-en-France, near Paris.[20][21][22][23] The 130,000 square metres (1,400,000 sq ft) complex was completed in December 1995. The French firm Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO) managed the project. The architect was Valode & Pistre and the design consultants were and Sechaud-Boyssut and Trouvin. The project had a price of 137,000,000 euros.[22]

References[edit]

  1. ^ a b AP (17 October 2011). "Juniac replaces Gourgeon as Air France CEO". Yahoo! News. Retrieved 12 April 2012. 
  2. ^ a b c d e "AirFrance–KLM Fiscal year 2012". Air France–KLM. Retrieved 22 February 2012. 
  3. ^ "AirFrance–KLM Registration document 2012". Air France–KLM. Retrieved 20 September 2013. 
  4. ^ "Contact Us." Air France–KLM ONE. Retrieved on 18 June 2010. "AIR FRANCE office, Paris Global Corporate Sales, JH.TS 30, avenue Léon Gaumont 75985 Paris Cedex 20 France" and "KLM office, Amsterdam KLM Headquarters Global Corporate Sales, AMS/SG Amsterdamseweg 55 1182 GP Amstelveen The Netherlands"
  5. ^ "Montreuil et 6 secteurs." Montreuil, Seine-Saint-Denis. Retrieved on 18 June 2010.
  6. ^ "Alitalia favors Air France–KLM bid." CNN. Friday 21 December 2007. Retrieved on 3 February 2010.
  7. ^ "Alitalia boss quits as talks end." BBC. Wednesday 2 April 2008. Retrieved on 3 February 2010.
  8. ^ "Air France seen beating tough odds for Alitalia." Reuters. Friday 2 January 2009. Retrieved on 3 February 2010.
  9. ^ Air France, Delta to examine Virgin Atlantic bid http://uk.reuters.com/article/2011/02/20/uk-airfrance-delta-virgin-idUKTRE71J1GH20110220
  10. ^ "World's Top 10 Safest Airlines Named". 30 August 2011. 
  11. ^ "KLM TO CEASE FLIGHTS TO IRAN IN APRIL". AP. Retrieved 12 January 2013. 
  12. ^ "Air France–KLM in talks to invest in JAL-source". Reuters. 15 September 2009. Retrieved 12 April 2012. 
  13. ^ "JAL alliance talks heat up with Air France–KLM entry". Reuters. 15 September 2009. Retrieved 12 April 2012. 
  14. ^ "Comments By American Airlines CEO Gerard Arpey on Japan Airlines Decision to Continue Membership in oneworld Alliance – 9 Feb 2010". Aa.mediaroom.com. 9 February 2010. Retrieved 12 April 2012. 
  15. ^ "Annual Report 2010-11". Air France–KLM. Retrieved 15 November 2011. 
  16. ^ NPR: NPR News In Brief[dead link]
  17. ^ "Eleven airlines fined in European cargo cartel investigation". Archived from the original on 12 November 2010. Retrieved 10 November 2010. 
  18. ^ "Air France to cut 2,000 jobs: report". Reuters. 14 December 2011. Retrieved 15 December 2011. 
  19. ^ "Air France-KLM gains Brazil foothold with $100 million Gol deal". Reuters. 18 Feb 2014. Retrieved 20 Feb 2014. 
  20. ^ "Legal Information." Air France–KLM. Retrieved on 3 February 2010.
  21. ^ "Plan interactif." Tremblay-en-France. Retrieved on 20 September 2009.
  22. ^ a b "AIR FRANCE HEAD QUARTERS – ROISSYPOLE." Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO). Retrieved on 20 September 2009.
  23. ^ "Roissy Charles-de-Gaulle." Tremblay-en-France. Retrieved on 20 September 2009.

External links[edit]