Air France-KLM is an airline company that was
originally two separate companies that merged in 2004 (Air France – French
& KLM – Dutch) with its head office in France at the grounds of Charles de
Gualle Airport.
Air France-KLM was recorded as the world’s largest
airline company in 2008 in terms of revenue and passenger-kilometers. In 2013
the company transported 78,448 million passengers and has about 100,000 employees.
Unfortunately the last 6 years for the company have been rough with the company recording losses each year. According to The
Financial Times Air France-KLM is stuck with its high
cost base and has had to contend with big fuel bills and fierce competition
from low-cost carriers.
The CEO Alexandre de Juniac is on a mission to
rebuild the struggling company and has been applauded for his effort to double
the share price within the short time of being CEO and has accelerated a three-year restructuring plan (Transform
2015 ).
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| Air France-KLM CEO, Alexandre de Juniac |
Debt reduction strategy
Transform 2015 is Air France-KLM's ‘transformation plan’ put in place with the aim to reduce the company’s debt by €2 billion over three years. (2012-2015).
Air France-KLM's biggest expense is its staff, spending about a third of its revenue on employees. In November 2012, a voluntary departure plan for around 3,000 people was launched, also planning to reduce their costs by cutting temporary employment.
The Group also launched a series of action plans where the heavily-loss-making short and medium-haul operations were restructured. In addition to the downsizing of the medium-haul and regional fleets and an improvement in staff productivity, the airline reorganised this activity around three complementary business units with a new pricing strategy.
Air France-KLM Board of Directors
