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Securing
the Group’s future
Alexandre de Juniac,
Chairman and CEO, Air France-KLM Group
In 2015, Air France-KLM successfully returned
toaEuropean leadership position
2015 marked a historic step for Air France-KLM: with operating
income of €816million and net income of €118million, the Group
posted its rst set of positive results since 2008. Both Air France
and KLM are now prot-making and our debt has been reduced
by more than €1billion. Two-thirds of this performance can be
attributed to the productivity gains realized thanks to the eorts
of employees and one third to the economic environment and
the decline in the oil price. The Transform 2015 plan has thus
borne fruit.
Competitiveness, a key condition for sustainable growth
Our achievements to date have enabled real gains in terms of
competitiveness: the turnaround of the cargo business, two-
thirds of the long-haul services now protable and a halving in
medium-haul operating losses. However, these positive results do
not protect us from a downturn in the trading environment and
our collective commitment must be pursued to reduce the short-
fall in competitiveness which still separates us from our
European peers. Continuing our in-depth transformation is
imperative if we want to be able to continue to invest, purchase
aircraft and recruit and train sta. This is the path we are pursu-
ing with Perform 2020, the guarantee of sustainable growth.
A world of opportunities: being in poll position
ingrowth markets
We benet from a market in robust health, with annual growth
estimated at 4% to 6% for the next ifteen years. Asia and the
European leisure market are two particularly dynamic segments
where we must be in the vanguard. In Europe, Transavia is on
the way to becoming a powerful low-cost player, capable of with-
standing competition from other airlines. In 2019, our aim is to
double the number of passengers carried to 20million, by
expanding its fleet from 67 to some 100 aircraft. In Asia, the
existing partnerships will require reinforcement in future
through new agreements. This will need to be done whilst
strengthening the attractiveness of our dual hubs, by oering the
most seamless connecting opportunities at Paris-CDG and
Amsterdam-Schiphol. Lastly, aeronautics maintenance, a busi-
ness in which we rank number two globally, is seeing extremely
strong growth. We have made substantial levels of investment in
this business with signiicant success. This is now one of the
Group’s main growth levers.
Oering the airline best in class by pursuing
ourmoveup-market
The improvement in our nancial situation must enable invest-
ment devoted to improving the customer experience, with the
focus resolutely on building closer relationships with each
and every one of them. More than €1billion has already been
dedicated to our product move up-market to ensure that our
oer is aligned with the best international standards. This eort
will be pursued, particularly on our customer services, both on
the ground and in the air.
Defending the air transport industry
Within the framework of my new functions as Director General
and CEO of the International Air Transport Association (IATA),
Ishall soon be doing my utmost to defend the whole air transport
industry and all the airlines. I am immensely proud to have
worked for Air France-KLM. I would like to thank everyone for
their commitment to ensuring the Group’s successful turna-
round and establishing the conditions for growth. Backed by the
expertise of its teams, the value of its brands and its European
foundations, Air France-KLM has all the assets it needs to com-
pete with the global champions in this industry.
A strategy based on
threepriorities:
2
Selective development
in growth markets:
long-haul, intra-European
low-cost, aeronautics
maintenance.
1
A product and service move
up-market targeting the
highest international
standards.
3
An on-going
improvement in productivity
andefficiency within
the framework of
strict capacity andcapex
discipline.
AIR FRANCE-KLM
4
AIR FRANCE-KLM
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