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Business and the First class on Air France-KLM (2009)

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documents in English
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case study
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14 pages
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  1. Introduction
  2. Product Strategy
  3. Services in shops
  4. Price positioning strategy
  5. Strategy of targeting customer
  6. Diversification
  7. Loyalty
  8. Conclusion

The simplification of trade by air has allowed two types of airlines to position themselves in Europe and USA. Scheduled airlines, often with a national base, are built around a network such as Air France, British Airways, Lufthansa, Emirates, Singapore Airlines, Delta Airlines, etc. These companies operate their network traffic and develop airport "hubs" respectively. They constantly strive to minimize costs, streamline their operations to enter new markets by reducing the weight of the payroll. The second model consists of low-cost airlines operating system. The two biggest players are RyanAir and EasyJet.

The first one serves secondary airports and the second one starts from the hub, and is in direct competition with Air France. These airlines offer a simplified service on most of their lines; they address a customer segment that is most interested in price than the quality of service.

We are now in the era of marketing, where supply exceeds the demand. One needs to have an offer that will satisfy and retain customers. This document examines if Air France-KLM has managed to adapt the first and business class to the changing aviation market.

In 2006, the Air France had the largest network between Europe and the world. It was founded in 1933 and became Air France in 2003. Air France-KLM is the 1st French airline, but it ranks as number one in many areas such as: the first European group of passenger transport; the first global group to transport international cargo and the first global multi-product operator in maintaining and servicing aircraft.

Air France offers 183 destinations, that is to say, 63% of destinations in the world, while its competitors, British Airways and Lufthansa serve 39% and 47% of destinations. In 1978, Air France creates the class "Business" which replaced the First Class on flights shorter or medium-range, comprehensive and long-haul. This model will be emulated by most other companies.

Loyalty programs are strategic for the development of airlines. They are at the heart of business strategy and enable the adoption of a marketing refined and complex. New trends in loyalty go to a development of a customer-oriented marketing through the enlargement of the customer focus and the establishment of a relationship marketing driven. The objective of Air France is to provide a better service than its competitors.

This is illustrated by: "A way of life with the French". The elegance of the hostesses, dressed by a fashion designer in Paris (Christian Lacroix), the excellent food and wine added to the quality of the fleet (prepared and selected by Guy Martin and Olivier Poussier), have maintained and improve the well-being of passengers in business class and 1st.

Always the same purpose, new generations of seats in business class and 1st were signed by leading designers (the largest market of the time) to improve the comfort of its passengers.

Each seat is equipped with a power outlet for computer, telephone and individually an individual video screen, allowing business people to work efficiently while traveling or relaxing.

Each passenger is entitled to, when stored in the database of Air France, a welcoming and personalized support. This is possible thanks to the intervention of sociologists, psychologists or semiologists who analyze the airline's customers.

Tags: Air France ? KLM; loyalty programs of Air France ? KLM; business and first class on Air France ? KLM

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