Air France 2008 Annual Report Download - page 18

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18
Strategy
The Group is pursuing a strategy of profitable
growth, leveraging the complementarity between
its two companies
The Air France-KLM Group is leveraging the
complementarity of the two companies in their three main
businesses: passenger, cargo and maintenance. It is
exploiting to the full the significant synergies in terms of
both revenues and costs. The Group’s growth strategy
goes hand in hand with strict cost control, reflected in
three-year cost saving plans.
A powerful network
The Air France-KLM Group has the largest route network
between Europe and the rest of the world.
Of the 181 long-haul destinations operated by AEA
(Association of European Airlines) member airlines in
summer 2008, Air France offers 114, or 63% of the total,
compared with 39% for British Airways and 47% for
Lufthansa and Swiss. The Group also offers 42 unique
destinations which are served by neither British Airways
nor Lufthansa.
Two coordinated hubs at fast-developing airports
The Group’s network is coordinated around the two
intercontinental hubs of Paris-Charles de Gaulle and
Amsterdam-Schiphol, which are two of the four largest
transfer platforms in Europe.
These hubs, which combine transfer traffic flows with
those of point-to-point traffic, are based at airports with
signficiant development potential.
Starting June 2007 and through to 2012, Air France will
benefit from the gradual opening of new airport
infrastructure which will provide top-flight facilities for
passengers and make Paris-Charles de Gaulle, like
Amsterdam-Schiphol, a reference within Europe.
A balanced customer base
The Air France-KLM Group benefits from a balanced
customer base, underpinning the resilience of its business
model: 52% are leisure passengers and 48% travel for
professional reasons while 56% are transfer passengers
and 44% take direct flights. Furthermore, half of revenues
come from regular customers whose loyalty the Group
secures with its frequent flyer program and through
corporate contracts.