Air France-KLM’s strategy can be summed up in one phrase: go looking for growth where it exists.
The air transport market is a world of rapidly-developing giants where there will be no place for second division players. Clearly, growth creates size and size favors growth. Air France-KLM’s ambition is to reinforce its position as a world major with European foundations. This ambition informs its raison d’être:bring Europe closer, carry the world to Europe and welcome the world in Europe.
The Group has identified three main growth levers: Asia where it plans to reinforce its existing partnerships and develop new ones with airlines which are similar to its own airlines in size, the European leisure market where it is going to accelerate Transavia’s growth, and the maintenance market where it plans to continue to make acquisitions to supplement its organic growth. However, to finance our growth, we are going to have to further improve our competitiveness and reduce our cost differentials with our main competitors.
While the Transform 2015 plan enabled the Group to begin to narrow the gap, the competitive (low-cost carriers in Europe, Gulf State carriers to the east) and economic pressures (weak unit revenues) are such that it is going to have to maintain and intensify its efforts.
This is why Air France-KLM is implementing the new Perform 2020 plan. All its employees are mobilized around building this plan. It will mean unleashing everyone’s initiative, creativity and expertise so that the Group can regain its leadership position.
This plan will enable Air France-KLM to act on the main levers that will forge its future performance:Competitiveness: improving its operational performance and reducing costs. More than one billion euros of savings will thus be achieved over the next three years.
Customer focus: the Group has ring-fenced its investment in upgrading the customer experience (lounges, seats, in-flight entertainment, catering on the ground and in the air, digital) and it is going to continue to develop its relationships with all its customers everywhere in the world.
Change the way it works: Air France-KLM is going to take a fresh look at the way it is organized to optimize processes and become even more efficient, agile and responsive.
This plan is going to succeed because the Group already benefits from multiple strengths to support its transformation efforts: innovation, openness, a fighting spirit, close customer relationships and reliability are at the heart of Air France-KLM’s corporate culture and history.
Its portfolio of brands (Air France, KLM Royal Dutch Airlines, HOP!, Transavia, AFI KLM E&M, Air France-KLM Martinair Cargo, Servair) enables the Group to respond to all the market needs with offers that are both well-positioned and mutually complementary.
Its international network, which it is continuing to consolidate, remains one of the best in the world.
Its alliances, both existing and future, contribute to its global reach.
Finally, the Group can count on the men and women of Air France-KLM, all committed to a single goal: increasing standards of customer service day after day.