Air France–KLM

Air France-KLM S.A.
Société anonyme
Traded as Euronext: AF
OTCQX: AFLYY
Industry Aviation
Founded 2004 (2004)
Headquarters Tremblay-en-France, France
Key people
Products
Services Airline services
Revenue Increase €26.062 billion (2015)[1]
Increase €26.059 billion (2015)[1]
Profit Increase €157 million (2015)[2]
Total assets Increase €23.335 billion (2015)[2]
Total equity Decrease €632 million (2014)[2]
Number of employees
 96,417 (2015)[2]
Website www.airfranceklm.com

Air France–KLM is a Franco-Dutch airline holding company incorporated under French law with its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris. The group has offices in Montreuil, Seine-Saint-Denis, Paris, and in Amstelveen, Netherlands.[3][4] Air France–KLM is the result of the merger in 2004 between Air France and KLM. Both Air France and KLM are members of the SkyTeam airline alliance. The company's namesake airlines rely on two major hubs, Amsterdam Airport Schiphol and Paris–Charles de Gaulle Airport. Air France–KLM Airlines transported 87.3 million passengers in 2014.

History

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 17.6%. 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.[5] However, on 2 April 2008, it was reported that negotiations have been abandoned.[6] 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.[7]

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.

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 a 51 percent stake in Virgin Atlantic and the rest is held by Delta Air Lines.[8]

Air France–KLM was categorized as one of World's 10 safest airlines in August 2011.[9]

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

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.[10][11] 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.[12]

Alexandre de Juniac, Chairman and CEO since 1 July 2013 resigned in early April 2016 and was replaced by Jean-Marc Janaillac on 4 July 2016.[13]

Corporate affairs

Business trends

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.[14]

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 15.9%.

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.[15] In November 2010, the European Commission fined Air France–KLM €310 million following another price-fixing investigation.[16]

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.[17]

In February 2014, Air-France KLM invested $100 million in Brazilian airline Gol Linhas Aéreas Inteligentes in advance of the 2014 football World Cup.[18]

During 2015, Air France went through a severe business crisis and a pilot's strike, which made the French airline cut almost 3,000 jobs, KLM defer some of its pending 787 deliveries, KLM's cargo subsidiary Martinair to retire six McDonnell-Douglas MD-11 airplanes, and Air France–KLM to suffer as a company.[19]

Ownership

As of 30 September 2015 the breakdown of capital is:[20]

Head office

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.[22][23][24][25] 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.[24]

Subsidiaries

Air France–KLM

Wholly owned

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 1 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).

Air France Services Ltd (AFSL) was one of the major ground handling companies at Heathrow airport. AFSL was created on the 15th of January 1997 and was in the beginning a partnership between Air France and Servisair Ltd. Servisair then decided to pull out.

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

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

Former subsidiaries

References

  1. 1 2 "Results". airfranceklm.com. 29 December 2014. Retrieved 10 October 2016.
  2. 1 2 3 4 http://www.airfranceklm.com/sites/default/files/communiques/consolidated_financial_statements_2015.pdf
  3. ↑ "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"
  4. ↑ "Montreuil et 6 secteurs." Montreuil, Seine-Saint-Denis. Retrieved on 18 June 2010.
  5. ↑ "Alitalia favors Air France–KLM bid." CNN. Friday 21 December 2007. Retrieved on 3 February 2010.
  6. ↑ "Alitalia boss quits as talks end." BBC. Wednesday 2 April 2008. Retrieved on 3 February 2010.
  7. ↑ "Air France seen beating tough odds for Alitalia." Reuters. Friday 2 January 2009. Retrieved on 3 February 2010.
  8. ↑ Air France, Delta to examine Virgin Atlantic bid http://uk.reuters.com/article/2011/02/20/uk-airfrance-delta-virgin-idUKTRE71J1GH20110220
  9. ↑ "World's Top 10 Safest Airlines Named". 30 August 2011.
  10. ↑ "Air France–KLM in talks to invest in JAL-source". Reuters. 15 September 2009. Retrieved 12 April 2012.
  11. ↑ "JAL alliance talks heat up with Air France–KLM entry". Reuters. 15 September 2009. Retrieved 12 April 2012.
  12. ↑ "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.
  13. ↑ Air France-KLM Names Janaillac CEO and Chairman as of July 4 Bloomberg http://www.bloomberg.com/news/articles/2016-06-24/air-france-klm-names-janaillac-ceo-and-chairman-as-of-july-4
  14. ↑ "Annual Report 2010-11" (PDF). Air France–KLM. Retrieved 15 November 2011.
  15. ↑ NPR: NPR News In Brief Archived 26 May 2008 at the Wayback Machine.
  16. ↑ "Eleven airlines fined in European cargo cartel investigation". Archived from the original on 12 November 2010. Retrieved 10 November 2010.
  17. ↑ "Air France to cut 2,000 jobs: report". Reuters. 14 December 2011. Retrieved 15 December 2011.
  18. ↑ "Air France-KLM gains Brazil foothold with $100 million Gol deal". Reuters. 18 Feb 2014. Retrieved 20 Feb 2014.
  19. ↑ mrosemain, Mathieu Rosemain (5 October 2015). "Air France Workers Rip Shirts From Top Managers in Jobs Protest". Retrieved 10 October 2016 – via www.bloomberg.com.
  20. ↑ "Shareholding structure". airfranceklm.com. 30 December 2014. Retrieved 10 October 2016.
  21. ↑ "Les participations publiques" (in French). Agence des participations de l'État. 30 September 2015. Retrieved 29 May 2016.
  22. ↑ "Legal Information." Air France–KLM. Retrieved on 3 February 2010.
  23. ↑ "Plan interactif." Tremblay-en-France. Retrieved on 20 September 2009.
  24. 1 2 "AIR FRANCE HEAD QUARTERS – ROISSYPOLE." Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO). Retrieved on 20 September 2009.
  25. ↑ "Roissy Charles-de-Gaulle." Tremblay-en-France. Retrieved on 20 September 2009.

External links

Media related to Air France-KLM at Wikimedia Commons

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