Air France, established in 1933 from a merger of five airlines, has played a key role as France's national flag carrier until its merger with KLM in 2003. The airline has focused on expanding its U.S. market share through innovative media marketing strategies and e-commerce, significantly increasing its revenue and passenger numbers in the 2000s. Utilizing search engine marketing and partnerships with media agencies, Air France has successfully adapted to the evolving airline industry landscape and consumer behavior.

2. INTRODUCTIONAir France was formed on 7 October 1933 from a merger of Air Orient, Air Union , CompagnieGénéraleAéropostale , CompagnieInternationale de Navigation Aérienn (CIDNA),, and SociétéGénérale de Transport Aérien (SGTA). In 1990, the airline acquired the operations of French domestic carrier Air Inter and international rival UTA – Union des Transports Aériens. Air France served as France's primary national flag carrier for seven decades prior to its 2003 merger with KLM. Between April 2001 and March 2002, the airline carried 43.3 million passengers and had a total revenue of €12.53bn. In November 2004, Air France ranked as the largest European airline with 25.5% total market share, and was the largest airline in the world in terms of operating revenue.

3. Air France is looking to increase the share of its’ own in the U.S air travel market.According to Sharon Benstein , director of insights media contacts, the revenue of this French companyincreasing by its’ media marketing strategy through ROA & online advertising.SEM (Search Engine Market) has grown by 62% from 2005 to 2006 which equals to $9.4 billion.

4. Earlier Life of Air FranceFive French Airlines merged to form Air France.

5. New hub setup at the main airport of the I1e de France Region in Paris

6. 75 years later, the hub had grown to be one of the most efficient in Europe with largest number of connections.

7. July 1, 1946, first flight to the U.S from Paris successfully lunched in 19 hours 50 minutes.

8. 2007, 383 aircrafts served 185 destinations in 83 countries.

9. May 5 2004, concept of “One Group, Two Airlines” between KLM and Air France with the name of Sky Team, 109 countries and 225 destinations with 150,000 workforces.

10. Air France grew, based on two strategies in it’s aircraft fleet management.Rationalization and FlexibilityAir France was able to adopt quickly to the changing demands. In low demands season the company had to reduce the capacity by eliminating unnecessary aircrafts.

11. Substantial part of its’ fleet was on short or medium term lease. Known as “Progressive Operating Lease”.

12. The practice had dedicated positive results form 1999 to 2007 in crisis years for airline industry.

13. During 2006 and 2007 global economy grew by 4.9% and airline traffic 6.6% according to the AEA Air France revenue increased by 5% which equals 73.5 million passengers carried which posted 5.1% rise in unit revenue per available seat Kilometres.The Airline Industry & Its’ Competitive LandscapeHistorically, low return industry, bankruptcies and ever fluctuating demand.2006 finally improved

14. 2000 - 2006, 42$ billion losses.

15. 2006, $500 million (0.1% revenue) break even.

16. 2006 operating income $13 billion more than double comparing in 2005 which was 3% of revenue.

17. $42 billion losses from 2000 - 20006 generated in U.S market

18. 2006 returned profitability excluding $10 billion bankruptcy restructuring.

19. Outside U.S airlines suffered net losses in 2001, because of September 11 attacks event.International travel had begun fastest growing market.

20. 2006, number of passengers kilometres grow by 6%

21. Domestic flights less than 4%.

22. 2/3 air passengers was domestic