Air France-KLM in the UK and across the world
Koninklijke Luchtvaartmaatschappij for The Netherlands and Colonies or KLM as it is popularly called took its maiden flight in 1919. 1933 saw the merger of five French airlines, Air Union, Air Orient, Société Générale de Transport Aérien (SGTA), CIDNA and Aéropostale, a veritable landmark in aviation industry. Both count among the few existing airlines to have been founded before World War II. Both were pioneering players in civil aviation. Born of the merger between Air France and KLM, the Group is the European leader in passenger transportation and ranks amongst the leading generalist companies in cargo transportation. In the aeronautics maintenance market, Air France-KLM is the world number two of the multi-product players. Air France KLM is the number one international long haul network to depart from Europe.
The Group has more than 100,000 employees as of today. Although the Air France and KLM teams are being brought together through joint training programs and dialogue between management and unions, each airline follows its own human resources policy, given the differing legislative frameworks in France and the Netherlands. Air France and KLM strive to share best practices while respecting the principle of coordination, as opposed to integration. The combined fleet of Air France KLM operates via 590 craft.
The group's fundamental assets mapped in a strongly competitive context have been found to be the powerful hub at Paris-Charles de Gaulle, a balanced network, a rationalized fleet, a worldwide alliance of SkyTeam, a trans-Atlantic joint venture agreement with Delta and an innovative product offer. On 7th July 2011, the Annual General Meeting approved the change in the financial year end, now fixed at 31st December.
The Board of Directors of Air France-KLM, presided by Jean-Cyril Spinetta, declared the operating income for the year to officially be -145 million euros (-132 million euros at 30th June 2010) after a 16% rise in the fuel bill (+232 million euros) and a loss estimated at 100 million euros resulting from the political events in Africa and the Middle East, as well as the nuclear crisis in Japan. The passenger business saw a 9.4% rise in traffic with capacity up by 10.1%. Passenger revenues rose by 9.9% to 4.80 billion euros, after a negative currency effect of 0.9%. The operating result stood at -140 million euros (-142 million euros a year earlier). The cargo business was impacted by the crisis in Japan as well as a situation of overcapacity on China departures. Traffic rose by 1.9% with capacity up by 6.2%. Revenues amounted to 799 million euros (+3.2%) while the operating result was -14 million euros, (versus +11 million euros at 30th June 2010). Air France has a focus of activities on three strategic segments: passenger transport, cargo and maintenance. Together these three represent 97% of the company's revenues. The remaining three percent is generated by Air France subsidiaries. Pierre-Henri Gourgeon is the Chief Executive Officer of Air France-KLM and Air France.