Air France 2009 Annual Report Download - page 17

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…preserving our strategic
strengths
Maintaining the quality of the offer, the
integrity of the network and the efficiency
of the hubs is based on a targeted zone
by zone reduction in capacity, taking into
account economic forecasts and the
competitive situation on each destination.
In long-haul, this has been done by
reducing frequencies to destinations
served by several daily flights and, in
medium haul, in maintaining the coverage
of the hubs. In Paris, this reduction in
capacity makes it more convenient for
transfer passengers in increasing the
minimum time for flight connections.
The crisis is compromising neither the
Group’s ongoing focus on marketing
innovation nor its investment in enhancing
the customer offer.
Reinforcing our fundamentals and…
The fall in the level of activity has led to the reinforcement of the Challenge 12 cost-savings
plan, whose main sources of savings are procurement and the improvement in productivity
and processes. In 2008-09 the initial objective of €430 million was successfully increased
to €675 million while the target for the current financial year has also been increased to
€600 million. By 2012, the Group should achieve some €2.6 billion of cost savings.
Planning for the future
During the financial year, the Group
concluded two strategic partnerships
to take its business forward.
Air France-KLM’s position on the North
Atlantic, the leading air transport market,
has been strengthened through a joint-
venture agreement with its partner Delta.
In Europe, the Group has also increased
its access to the Italian market, the fourth
largest, in stepping up its cooperation
with Alitalia.
15
Air-France KLM - Annual report 2008-09