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Air France-KLM 2010-11 Annual Report _ 1
Jean-Cyril Spinetta, Chairman of the Air France-KLM Board of Directors
We can face the challenges
with confidence
E D I T O R I A L
After a challenging time in 2009-10, our Group has
succeeded in stemming the haemorrhage and returning
to profit while also reducing debt. Our recovery has been
remarkable. This success is thanks to the outstanding work
of the Air France-KLM teams and the resolute commitment
of all our employees within a difficult environment. I would
like to thank everyone for their efforts.
To confirm this recovery, the Air France-KLM group was
able to implement the strategy required to win back market
share lost during the crisis in both the passenger and cargo
businesses. But make no mistake: we are still in an uncertain
air transport environment. There remain numerous obstacles
to overcome to ensure that our Group remains in a leading
position. I am thinking, in particular, of the oil price, and
competition from low cost carriers and the Gulf State airlines.
We are, however, on the right track. The Air France-KLM
group has established an effective business model that its
main European competitors have been swift to replicate.
The SkyTeam alliance, which is the most advanced in terms
of operating principles, has been considerably reinforced.
On the North Atlantic, the leading long-haul market globally,
Air France-KLM has established a significant lead over
the other alliances, and particularly Star Alliance, through
the joint-venture that the Group has created with Delta and
Alitalia. Our goal is to extend this model to all our SkyTeam
partners, and particularly our Chinese partners. Furthermore,
we are actively engaged in membership negotiations with
other airlines in Brazil, India and elsewhere in Asia. On this
basis, SkyTeam stands to benefit from global coverage.
SkyTeam will be the alliance benchmark. My initial thinking
had been that global transportation would be structured
around three major global systems: SkyTeam, Star Alliance
and One World. Today this is a reality. We now have to be
sure to maintain our position and our role within SkyTeam.
The agreement with Alitalia implemented in 2009 further
reinforces the Group’s presence on the large Single European
Sky market and makes Air France-KLM the unrivalled leader
on all long-haul routes between Europe and the rest
of the world.
Looking ahead, we need to further improve the efficiency
of the Air France-KLM group. Seven years after the merger,
we must ensure that we are constantly reinforcing the
Group’s cohesion and the relevance of its strategic choices.
I have no doubt that the remarkable mobilization of all
Air France-KLM employees during the difficult period we
have just experienced has left us well equipped to face
the challenges ahead with increased confidence.
“Air France-KLM
has established
an effective business
model that has been
widely replicated.”