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
[...] Ironically, this value has increased by EBITDA: This resource is recovered by the company solely because of its logging operations. EBITDA is a good measure of the commercial performance of the company. The balance remains positive but is slowly decreasing. Here, the problem is mainly due to the increase in payroll taxes. The airline industry is in crisis, the turnover has reduced while the workforce has remained the same. This means that with a variable turnover, personnel expenses remain the same, which reduces business productivity. [...]
[...] Profit before tax: It integrates elements of the operational level and the factors relating to the debt policy of the company. The decline in operating performance and the deteriorating financial situation of Air France led to the decline in its profits before tax. Exceptional results: The results reflect the fiscal policy of the company. The financial burdens are accentuated by the deficits of the company. Profit for the year: This is not an indicator of the level of activity of the company. It is used to establish or increase reserves and also to assess the value of corporate performance. [...]
[...] The new initiatives brought about by Air France-KLM are aimed at wooing its customers. These include launching a joint frequent flyer program that will strengthen the group's position on the market. Similarly, the introduction of the "European house Cargo" will offer their customers a joint commercial offer. On the other hand, it would be desirable to take advantage of all the "potential synergies of the Sky Team." That is, first of all, to realize the expected gains on revenue and distribution costs through the harmonization of tariffs and trade policies and the leverage of interlocking agreements that operate at the appropriate time and the "Anti- trust immunity" agreement that was requested for Air France, KLM, Delta, Northwest, Alitalia and CSA. [...]
[...] They have four central areas that manage their maintenance duties i.e. Bourget, Orly in Villeneuve-le-Roi and Toulouse Blagnac. Air France-KLM stands is the most popular (ranks 1st) for international passenger traffic, is the second largest global cargo business and is a leading provider of maintenance services. With a fleet of 554 aircraft in March 2005, the group operates approximately 1,800 daily flights worldwide Partners and affiliates Air France is a founding member of the SkyTeam global alliance that was created in June 2000. [...]
[...] Structural analysis of Air France Overview I. Air France - KLM Introduction The structure of the company Activities and world ranking The partners and subsidiaries II. Intermediate Balance Management III. The environment of Air France IV. Future prospects Conclusion i. Air France-KLM 1. Introduction On July Air France-HLM was born of a merger between Air France (founded in 1933) and KLM (the Royal Dutch Airlines, established in 1919). It has a capital of 2,289,759,903 euros that is distributed among 269,383,518 shares at 8.5 euros each. [...]
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