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12 _ Air France-KLM 2010-11 Annual Report
Looking to the future, what do you see as Air France-KLM’s
principal development strength?
Globally, Air France-KLM is the air transport group with the greatest
presence in rapidly-growing markets. We have strong positions
in the Asian markets which, by their dynamism, have become a key
strategic region. We are reinforcing our leadership in Africa, where
the disruption in a number of countries should not mean we overlook
the real and strong overall development. Our two airlines’ networks
there are remarkably complementary.
We are also consolidating our presence in Latin America, through new
partnerships and the opening of new routes. With
76 countries served in long-haul, or 20 countries
more than our closest European competitor,
our network is, naturally, exposed to the majority
of unforeseen events but its significant diversification
enables their impact to be smoothed. Furthermore, we have learned
to be flexible.
Your cargo business has seen a spectacular recovery.
Our cargo business effectively returned to profit in just one year rather
than the two initially planned. This is the fruit of our strategy based
on restructuring the offer to prioritize the bellies of passenger and combi
aircraft. We have been able to grow our cargo activity and revenues
thanks to productive growth.
This demonstrates the real success of our model. Our two airlines
are complementary and are able to generate numerous synergies.
Our two coordinated European hubs, the good fit between our networks
and markets and the many synergies between our two companies are
the keys to our current and future success.
Air France and KLM are repositioning their offer towards
European destinations. What is this aimed at?
Air France and KLM have always had to contend with competition,
something which also acts as a stimulus for any airline. On medium-
haul flights they currently need to reinforce
their competitiveness relative to the other majors,
low cost carriers and high-speed rail.
Two years ago, Air France launched a new
European offer to respond to customer expectations
by offering them more attractive fares, simplified services and revamped
cabins with more comfortable, lighter seats that are thus more
respectful of the environment. This program also calls for larger aircraft
to reduce frequencies. Backed by this experience, our teams have been
deploying this concept on KLM flights for the past few months
and I must say that the initial results are very encouraging. With teams
working in close coordination and a focus on service quality, the two
airlines are making a real different vis-à-vis customers. This is one
of our Group’s great strengths.
“We have
learned to be
flexible.”
I N T E R V I E W
“Our model is proving
a real success.
Our two companies
are complementary
and are able to generate
significant synergies.”
Peter
Hartman
President and Chief Executive Officer, KLM
C
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