2.
ABOUT THE COMPANY
AIR FRANCE
KLM
SKY TEAM ALLIANCE
MERGER DETAILS
KEY NOTES
MAJOR ACTIVITIES OF NEW COMPANY
DEVELOPMENTS AFTER THE MERGER
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Air France (formally Société Air France, S.A.) is the
French flag carrier headquartered in Tremblay-enFrance, (north of Paris).
Air France was formed on 7 October 1933 from a
merger of Air Orient, Air Union, Compagnie
Générale Aéropostale, Compagnie Internationale
de Navigation Aérienne (CIDNA), and Société
Générale de Transport Aérien (SGTA).
CEO: Frédéric Gagey
Air France served as France's primary national flag
carrier for seven decades prior to its
2003 merger with KLM.
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Koninklijke Luchtvaart Maatschappij N.V. (KLM Royal
Dutch Airlines), known by its initials KLM, is the flag
carrier airline of the Netherlands. CEO is Camiel
Eurlings
KLM's headquarters is in Amstelveen near its hub
at Amsterdam Airport Schiphol.
KLM operates worldwide scheduled passenger and
cargo services to more than 90 destinations.
It is the oldest airline in the world still operating under
its original name.
The merger of KLM with Air France in May 2004 created
Air France-KLM, which is incorporated under French
law with headquarters at Paris-Charles de Gaulle
Airport.
Air France-KLM is part of the Sky Team alliance
7.
SkyTeam is an airline alliance with its centralised
management team, SkyTeam Central, based at the World
Trade Center Schiphol Airport on the grounds of Amsterdam
Airport Schiphol in Haarlemmermeer, Netherlands.
SkyTeam was founded in 2000 by Aero Mexico, Air
France, Delta Air Lines, and Korean Air.
SkyTeam was the last of the three airline alliances to be
formed, the first two being Star Alliance and Oneworld.
It also operates a cargo alliance named Sky Team
Cargo, which partners ten carriers —all of them SkyTeam
members— following the entrance of China Airlines Cargo in
October 2012.
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On 30 September 2003, Air France and KLM
announced and agreed to a merger plan in which
Air France and KLM would become subsidiaries of
a holding company called Air France-KLM.
In February 2004, the European
Commission and US Department of
Justice approved the proposed merger of Air France
and KLM.
In April 2004, an exchange offer took place in
which KLM shareholders exchanged their KLM
shares for Air France shares.
On 4 May 2004, the exchange offer was called
successful,
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Air France – KLM is listed at the Euronext exchanges
in Paris, Amsterdam and New York.
In September 2004, the merger was completed by
creation of the Air France-KLM holding
company. The merger of Air France and KLM
resulted in the world's largest airline group by
turnover.
CEO is Jean-Cyril Spinetta
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Air France shareholders owned 81% of the new firm
(44% owned by the French state, 37% by private
shareholders), former KLM shareholders the rest.
The decision of the Jean-Pierre Raffarin government to
reduce the French state's shareholding in the former
Air France group from 54.4% to 44% of the newly
created Air France-KLM Group effectively privatised
the new airline.
In December 2004 the state sold 18.4% of its equity in
Air France-KLM. The state's shareholding in Air
France-KLM subsequently fell to just under 20%
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Passenger Transport:
Freight Transport:
Largest company for international freight transportation
without integration.
With integration, Air France-KLM is third worldwide
behind FedEx Express and UPS Airlines.
Airplane Maintenance and Repair:
Largest Multi - Services Operator.
First European airline with 25.5% of market share (November
2004) and largest airline in the world in terms of operating
revenue.
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On 13 January 2009, Air France agreed to enter into recently
privatised Alitalia's capital share with a 25% stake. This
capital investment is coupled with a co-operation agreement
on an industrial basis.
In 2010 the company opened its smartphone version of its
corporate website.
In 2011 Air France launched its major sales offensive in
Marseilles with Toulouse, Nice and Bordeaux following in
2012. The company also launched new long-haul
destinations to Orlando, Cancun, Cape Town, Lima, Phnom
Penh, Fort-de-France, Pointe-a-Pitre and also Montreal,
Washington D.C and Dubai on the Airbus A380.
On 12 January 2012 Air France-KLM announced their threeyear transformation plan, called Transform 2015, to restore
profitability. This plan works by restoring competitiveness
through cost-cutting, restructuring the short- and mediumhaul operations and rapidly reducing debt. The main
objective of this plan is to turn Air France-KLM back into a
14.
On 21 June 2012 Air France-KLM had announced its decision to
cut just under 10% of the total 53,000 workforce (about 5,000
jobs) by the end of next year in an attempt to restore
profitability by 1,700 jobs natural turnover and the rest by
voluntary redundancies, so hopefully no compulsory
redundancies.
As of August 2012, the Transform 2015 plan was accepted by
ground staff and pilot unions but rejected by cabin crew unions
Considering a partnership with Delta Airlines is in talks with
Japan Airlines to invest in their business, who is a part of ONE
WORLD ALLIANCE (their main rivals). But this didn’t work
out due financial problems
