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Structural analysis of Air France

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case study
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  1. Introduction
  2. Analysis of the market in terms of the offer
    1. Sector definition
    2. Supply structure
    3. Evolution of the size of the sector
    4. Segmentation
    5. Price evolution
  3. Competition
  4. Distribution
    1. Direct distribution
    2. Indirect distribution
  5. Demand quality
    1. Consumers
    2. Prescribers
  6. Macro environment
    1. Sociocultural factors
    2. French legislation on eco-tourism
    3. Economic factors
  7. SWOT

Founded on July 3, 2005, Air France-KLM was formed as a result of a merger between Air France (founded in 1933) and KLM (Royal Dutch Airlines founded in 1919). It has a capital of 2,289,759,903 euros, divided into 269,383,518 shares at 8.5 euros each.

The Air France-KLM company is organized around a simple structure, a holding company with two airline subsidiaries. This organization is a grouping of two airlines with the aim to respect the individual identities, brands and cultures while sharing the results.

The Air France-KLM is the first worldwide in terms of international passenger traffic, second in the global group for the cargo business and a leading global provider of maintenance services.

With a fleet of 554 aircraft in March 2005, the group operates about 1800 daily flights worldwide. Air France is a founding member of Sky Team global alliance created in June2000 and held since September 2004: This alliance brings together partners from around the world and Air France is able to respond to market needs in terms of transporting people and freight.

In the present tense situation Air France has a maintained a certain level of activity to the detriment of its competitors. It all started after the 11 September attacks that disturbed the links between the US and the world. The constant and consistent rise in the price of oil has influenced the ticket costs of the airline.

To complete its objectives Air France has decided to develop and disseminate within the company, a culture of change. Initially, it will ?anticipate and innovate' to the new emerging environment. To talk and share in order to better understand the challenges and to understand each employees contribution.

The airline company also strives to find a balanced solution between individual and collective, short and medium term economy and social development.

Tags: Air France analysis, collaboration with KLM, objectives and operations

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