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Trav log
ANNUAL REPORT 2013

Table of contents

  • Page 1
    ANNUAL REPORT 2013 Travel log

  • Page 2
    ... the commitment of its employees, the Group continues to invest to offer its customers products which are increasingly adapted to their needs and ways of traveling. AIR FRANCE-KLM ANNUAL REPORT 2013 Ten years after its creation, in 2014, the Air France-KLM group is a world leader in its three main...

  • Page 3
    ...the Transform 2015 plan. This year we celebrate the ten-year anniversary of the merger between Air France and KLM. This is an opportunity to retrace how far we have come but also to consider the future challenges. Tomorrow, having gained strength and agility, we plan to consolidate the Group's world...

  • Page 4
    ... ten years! ...10 Our achievements ...13 AIR FRANCE-KLM ANNUAL REPORT 2013 Our goal: highest international level...20 Our destinations ...30 Holds full of ideas ...38 Top-ï¬,ight maintenance ...40 My trip ...42 Our commitment ...51 A rationalized ï¬,eet ...56 Governance ...61 CORPORATE SOCIAL...

  • Page 5
    ENJOY THE ENTIRE WORLD DEPARTING FROM EUROPE Thanks to the partnership between AIR FRANCE and KLM along with our SkyTeam partners, we offer one of the largest networks giving you access to over 1000 destinations.

  • Page 6
    THE COMMERCIAL REVOLUTION " We are confident of our ability to achieve our Transform 2015 plan objectives. " AIR FRANCE-KLM ANNUAL REPORT 2013

  • Page 7
    ...be organized around a few global companies. Do you believe that Air France-KLM can be one of these giants? ADJ â-† That's our aim! We operate the leading long-haul network on departure from Europe. With more than one hundred destinations evenly spread across all world regions, this is a considerable...

  • Page 8
    ...KLM ANNUAL REPORT 2013 FG â-† We have also worked extensively on our medium-haul business model, particularly at Air France. Reducing capacity in the provincial bases, the disposal of our loss-making subsidiary CityJet, new products and services, the hub development plan and the voluntary departure...

  • Page 9
    ...long-term aim is quite simply to offer our customers the best product on the market. The new Business seats and the recently-unveiled revamped La Première cabin are just two examples. CE â-† This strategy is already bearing fruit: since the launch of KLM's new World Business Class seat in July 2013...

  • Page 10
    ... airline mergers have proliferated around the world, Air France-KLM remains a trail-blazer with a model which it continues to consolidate and adapt to the new needs of its customers AIR FRANCE-KLM ANNUAL REPORT 2013 Our strengths A POWERFUL FREQUENT FLYER PROGRAM Flying Blue, the Group's loyalty...

  • Page 11
    ... and marketing. The merger of the sales teams and their remarkable integration is now driving the growth of the brands everywhere in the world. A SPOTLIGHT ON THE FIRST 10 YEARS The sign of a constantly renewed dynamism, the Air France-KLM advertising campaign running since December 2013 highlights...

  • Page 12
    Our social media team is available 24/7 Regardless of the time, where you are, or what your circumstances may be, someone from KLM is always available to help. Just contact us via facebook.com/klm or twitter.com/klm and we'll respond within one hour.

  • Page 13
    Our achievements PAGES 12 - 13

  • Page 14
    ... IN LINE WITH THE TRANSFORM 2015 TARGETS: Net debt was reduced to â,¬5.35 billion versus â,¬5.97 billion in 2012; â-† Unit costs [2] declined by 2.0%, in line with the target of a 0.4 cent reduction between 2011 and 2014. â-† [1] CityJet reclassified as a discontinued operation. [2] Unit cost per...

  • Page 15
    ...THE SERVICE OF CUSTOMERS 24/7 On the social media, the Air France and KLM teams are available 24/7 to meet their customers' every need. A question about your trip, a doubt as to your ï¬,ight time or a need to change your reservation? The two companies aim to respond to requests in under an hour. KLM...

  • Page 16
    ... 1,800 DAILY FLIGHTS DESTINATIONS 231 103 (Summer 2014) AIR FRANCE-KLM ANNUAL REPORT 2013 COUNTRIES (Summer 2014) Services THE MOVE UPMARKET IS UNDERWAY! Launched in 2013, the dynamic to move the Group's products and services upmarket will gain momentum in 2014. From new travel cabins...

  • Page 17
    ... Summer 2014 season, Air France-KLM will be operating five new long-haul routes: Brasilia (Brazil), Jakarta [2] (Indonesia), Panama City (Panama) and TokyoHaneda (Japan) on departure from Paris and Santiago de Chile on departure from Amsterdam. On its medium-haul network, in Summer 2014, Air France...

  • Page 18
    ...-KLM ANNUAL REPORT 2013 OUR ACHIEVEMENTS Franceis in the air NEW ADVERTISING CAMPAIGNS A FIRST FOR AIR FRANCE-KLM For the first time since their 2004 merger, Air France and KLM have launched a joint advertising campaign, showcasing the numerous destinations offered by the Franco-Dutch Group...

  • Page 19
    ... expansion in the network. For Summer 2014, transavia.com in France will open 18 new routes on departure from five French airports (Paris-Orly Sud, Nantes, Lille, Lyons and Strasbourg). In addition, since March 31, 2014, members of Air France-KLM's Flying Blue frequent ï¬,yer program have been able...

  • Page 20
    AIR FRANCE-KLM ANNUAL REPORT 2013 THE HIGHEST INTERNATIONAL LEVEL

  • Page 21
    Our aim: the highest international level Air France-KLM is embarked on a strategy to move upmarket and is pursuing its commercial offensive with a massive â,¬700 million investment in new travel cabins. A single objective: return to the highest international level within record time. PAGES 20 - 21

  • Page 22
    AIR FRANCE-KLM ANNUAL REPORT 2013 THE HIGHEST INTERNATIONAL LEVEL A MOVE UPMARKET FOR ALL

  • Page 23
    ...Since April 2014 on short and medium-haul ï¬,ights Air France has offered the "Seat Plus" option. This service, which is already available on the long-haul ï¬,ights, offers a guarantee of traveling in a seat situated by the aircraft doors with increased legroom. Air France's new Economy seat PAGES...

  • Page 24
    AIR FRANCE-KLM ANNUAL REPORT 2013 THE HIGHEST INTERNATIONAL LEVEL KLM's Economy Comfort seats More spaceand additional functionalities Economy Comfort, setting new travel standards At KLM, Economy Comfort is setting new travel standards. Located at the front of the Economy cabin, this space ...

  • Page 25
    PAGES 24 - 25

  • Page 26
    AIR FRANCE-KLM ANNUAL REPORT 2013 THE HIGHEST INTERNATIONAL LEVEL KLM's World Business Class A revolutionary new Business cabin In March 2013, KLM scored points in the Business cabin battle with the exclusive unveiling of its new World Business Class. Fully reclining and measuring over two metres...

  • Page 27
    ...exclusive new seat Agenda All of KLM's Boeing 747s will be equipped with World Business Class by summer 2014 and the Boeing 777s by the summer of 2015. 44 of Air France's Boeing 777s will be progressively equipped with new Economy, Premium Economy and Business cabins between June 2014 and June 2016...

  • Page 28
    AIR FRANCE-KLM ANNUAL REPORT 2013 THE HIGHEST INTERNATIONAL LEVEL Design your journey according to your desire Air France's La Première, a designer suite In early May 2014, during an exclusive event in Shanghai, Air France unveiled its new La Première suite. Conceived for the airline by B/E ...

  • Page 29
    THE SOARING PALACE New La Premiere Suite: discover absolute comfort and five-star service throughout your journey. AIRFRANCE.COM Gradually installed on a part of Boeing 777 fleet as of September 2014.

  • Page 30
    AIR FRANCE-KLM ANNUAL REPORT 2013 OUR DESTINATIONS

  • Page 31
    Our destinations From the Stavanger fjords to the vast open spaces of Santiago, setting a heading for Air France-KLM's new destinations! PAGES 30 - 31

  • Page 32
    AIR FRANCE-KLM ANNUAL REPORT 2013 OUR DESTINATIONS Panama

  • Page 33
    ... in the summer of 2014: Brasilia (Brazil), Jakarta [2] (Indonesia), Panama City (Panama) and Tokyo-Haneda (Japan) on departure from Paris and Santiago de Chile on departure from Amsterdam. Five new long-haul routes Since 2012 and the implementation of its Transform 2015 plan, Air France-KLM has...

  • Page 34
    ... Africa. In 2014, the signature of a long-term strategic partnership with the Brazilian airline GOL should support the Group's growth in Latin America by giving it exclusive access to the domestic network of one of the region's main operators. AIR FRANCE-KLM ANNUAL REPORT 2013 the shortest possible...

  • Page 35
    Stavanger PAGES 34 - 35

  • Page 36
    ...hub, Air France and KLM customers can access more than 20 destinations in Central America. In early 2014, the Group signed a long-term strategic partnership agreement with the Brazilian airline GOL. With approaching 40% of the domestic market, GOL is a major player in Brazil and an exclusive partner...

  • Page 37
    Brasilia PAGES 36 - 37

  • Page 38
    ... high-value-added goods. More partnerships To consolidate its global presence, Air France-KLM has also decided to play the partnership card. As with passenger transportation, agreements with other airlines enable the optimization of resources and economies of scale. In 2013, the Group thus extended...

  • Page 39
    1 2 3 4 1. Loading horses from the Zingaro theatre departing for Mexico at Paris-Charles de Gaulle. 2. Loading a full freighter aircraft at AmsterdamSchiphol. 3. Pallets of ï¬,owers carried by Air France-KLM-Martinair Cargo. 4. Transporting a satellite from Toulouse to Cayenne. PAGES 38 - 39

  • Page 40
    ... its role as a lever in the Group's on-going recovery. AIR FRANCE-KLM ANNUAL REPORT 2013 Setting new standards of excellence Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) offers airlines an extensive range of technical support capabilities. An ability to manage the constraints...

  • Page 41
    Exceptional maintenancetools 1 2 3 1. Across the world, more than 14,000 people contribute to the excellence of the maintenance business. 2. In 2014, some 1,300 aircraft belonging to 150 domestic and international carriers were handled. 3. The Group has state-of-the-art technologies and industrial ...

  • Page 42
    AIR FRANCE-KLM ANNUAL REPORT 2013 MY TRIP

  • Page 43
    My trip Air France and KLM's customer-focused services support me at the airport, during the ï¬,ight and through to arrival at my destination. Some highlights of my travel experience with the Group. PAGES 42 - 43

  • Page 44
    ...clock personalized support. When booking my ticket, I tested the new exclusive service offered by KLM: payment directly on Facebook or Twitter thanks to a secure link forwarded by the airline. Prepare for take-off! AIR FRANCE-KLM ANNUAL REPORT 2013 @KLM_localeyes, one of my favorite Twitter accounts...

  • Page 45
    ... checked baggage has priority delivery. [1] SkyPriority is available for La Première, Business and Premium Economy passengers and for members of SkyTeam Elite Plus Amsterdam - Schiphol Paris - Charlesde Gaulle My favorite lounges Air France and KLM Business and La Première customers have access...

  • Page 46
    ... an à la carte menu? In the long-haul Economy and Premium Economy classes, Air France and KLM give me the option of choosing a meal other than the one served free on board until the evening before my departure. I can thus discover new dishes and enjoy the opportunity to embark on an international...

  • Page 47
    ... 1,000 hours of programing will soon be availaible. In a few months, on board the new Air France and KLM cabins, and regardless of my travel class, I'll be able to enjoy my favorite programs on even-wider touch screens equipped with fully-upgraded graphics interfaces. World Business Class PAGES 46...

  • Page 48
    ... future Air France La Première cosmetics kits will be designed by Givenchy...The quintessence of Parisian elegance shortly to be found on board. KLM Wannagives, a new exclusive service On board my KLM flight, I was surprised to receive a gift from a friend delivered directly to me by a member of...

  • Page 49
    ... Flying Blue, my leading frequent flyer program in Europe By signing up for Flying Blue membership, I become one of Air France-KLM's privileged passengers and gain access to all the benefits of an extensive international network. The more I travel on the flights of Air France, KLM and their partner...

  • Page 50
    It was too hard to choose Our team recently won the 'Best Airline Staff in Europe Award'. That's because everyone from the mechanics to the stewardesses do everything they can to ensure your journey runs as smoothly as possible. So ï¬,y with us if you're after that human touch that makes all the ...

  • Page 51
    Our commitment PAGES 50 - 51

  • Page 52
    AIR FRANCE-KLM ANNUAL REPORT 2013 OUR COMMITMENT SUSTAINABLE AND RESPONSIBLE DEVELOPMENT A commitment to Corporate Social Responsibility is at the heart of the Group's strategy, reconciling growth, the promotion of social equity and respect for the environment. Air France-KLM is mobilized around ...

  • Page 53
    ..., and thereby its impact on the environment, notably by equipping its long-haul aircraft with lighter baggage containers. For further information on sustainable development within the Air France-KLM group, please see the Corporate Social Responsibility Report at www.airfranceklm.com. PAGES 52 - 53

  • Page 54
    AIR FRANCE-KLM ANNUAL REPORT 2013 OUR COMMITMENT A COMMITMENT TO CONCRETE ACTION As an air transport leader, Air France-KLM is aware of the role it can play in building a more responsible world. The Group partners associations and NGOs, and its CSR commitment finds concrete expression in support...

  • Page 55
    ... make a real difference. This is why the Air France-KLM group offers its frequent flyers the opportunity to participate in its humanitarian programs by donating Flying Blue Miles. The generosity of its customers to KLM AirCares and Air France's association partners enables the financing of ever more...

  • Page 56
    ... Air France-KLM fleet comprised 552 [1] aircraft in operation. With an average age of 10.2 years, it is one of the most modern and most rationalized fleets in the sector. AIR FRANCE-KLM ANNUAL REPORT 2013 BOEING 747-400 NUMBER: 7 SEATS: 432 SPEED: M 0.85 LENGTH: 70.66 M WINGSPAN: 64.44 M AIRBUS...

  • Page 57
    ... M / 64.80 M MC DONNELL DOUGLAS MD 11 PASSENGERS / CARGO NUMBER: 4 / 6 SEATS: 285 WEIGHT CARRIED: 82 TONS (CARGO) SPEED: M 0.85 LENGTH: 61.21 M WINGSPAN: 51.96 M THANKS TO A YOUNG FLEET, AIR FRANCE-KLM CAN ACHIEVE SUBSTANTIAL FUEL SAVINGS AND REDUCE ITS CARBON EMISSIONS. Fleet at December 31, 2013

  • Page 58
    A RATIONALIZED FLEET MEDIUM-HAUL FLEET BOEING 737-700 / 800 / 900 NUMBER: 18 / 24 / 5 SEATS: 132 / 174 / 189 SPEED: M 0.78 LENGTH: 33.62 M / 39.47 M / 42.12 M WINGSPAN: 35.80 M AIR FRANCE-KLM ANNUAL REPORT 2013 AIRBUS A318 / A319 NUMBER: 18 / 41 SEATS: 131 / 142 SPEED: M 0.78 LENGTH: 31.44 M / 33...

  • Page 59
    ... 20.04 M / 20.04 M / 26 M / 28.72 M CANADAIR REGIONAL JET 100 / 700 / 1000 NUMBER: 7 / 13 / 13 SEATS: 50 / 70 / 100 SPEED: M 0.78 LENGTH: 27.77 M / 32.51 M / 39.10 M WINGSPAN: 21.21 M / 23.35 M / 26.20 M SINCE MARCH 2013, AIR FRANCE'S REGIONAL FLEET HAS BEEN REGROUPED UNDER THE HOP! BANNER ATR 42...

  • Page 60
    FRANCE IS IN THE AIR AIRFRANCE.FR

  • Page 61
    Governance PAGES 60 - 61

  • Page 62
    ... COMMITTEE OF THE GROUP AT MARCH 31, 2014 AIR FRANCE-KLM ANNUAL REPORT 2013 Alexandre de Juniac Frédéric Gagey Camiel Eurlings Chairman and Chief Executive Officer of Air France-KLM Chairman and Chief Executive Officer of Air France President and Chief Executive Officer of KLM Alain Bassil...

  • Page 63
    ... Business Executive Vice President, Strategy - Passenger Business Executive Vice President, Human Resources Jean-Christophe Lalanne JacquesLe Pape Pierre-François Riolacci Executive Vice President, Information Technology Executive Vice President, Corporate Secretary Chief Financial Officer...

  • Page 64
    ... Board of Directors comprised 14 members, 11 members appointed by the Shareholders' Meeting (including two representing the employee shareholders) and three representatives of the French State appointed by ministerial order. AIR FRANCE-KLM ANNUAL REPORT 2013 Establishing the strategy of the Group...

  • Page 65
    ...in other meetings and international conferences on air transportation. The Investor Relations team maintains an on-going dialogue with financial analysts and institutional investors. Private events for shareholders To gain a greater behind-the-scenes insight into the Group, Air France-KLM regularly...

  • Page 66
    GOVERNANCE CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP AT DECEMBER 31, 2013 CONSOLIDATED BALANCE SHEET ASSETS In â,¬ million 31/12/2013 31/12/2012 Pro forma* AIR FRANCE-KLM ANNUAL REPORT 2013 Goodwill Intangible assets Flight equipment Other property, plant and equipment Investments in equity...

  • Page 67
    ... In â,¬ million 31/12/2013 31/12/2012 Pro forma* Issued capital Additional paid-in capital Treasury shares Reserves and retained earnings EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF AIR FRANCE-KLM Non-controlling interests TOTAL EQUITY Provisions and retirement benefits Long-term debt Deferred tax...

  • Page 68
    ... Aircraft fuel Chartering costs Aircraft operating lease costs Landing fees and en route charges Catering Handling charges and other operating costs Aircraft maintenance costs Commercial and distribution costs Other external expense Salaries and related costs AIR FRANCE-KLM ANNUAL REPORT 2013 25...

  • Page 69
    CONSOLIDATED STATEMENT OF CASH FLOWS In â,¬ million, period from January 1 to December 31 2013 2012 Pro forma* Net income from continuing operations Net income from discontinued operations Amortization, depreciation and operating provisions Financial provisions Gain on disposals of tangible and ...

  • Page 70
    ...and access at www.airfranceklm.com, the Annual Report, the Corporate Social Responsibility Report, the Registration Document, all the key figures, the news on the Group together with the map of the network and the interactive fleet. Flash this code... www.airfranceklm.com

  • Page 71
    Air France-KLM's 2013 Annual Report was produced by the Air France Information and Contents Department. Design and realization : Photo credits: cover © Nicolas Petteau, Air France-KLM Photo library, 3D views Air France Business seat © Style & Design, Air France Business seat © Martien Mulder @ ...

  • Page 72
    www.airfranceklm.com