World Library  
Flag as Inappropriate
Email this Article

Air France–KLM

Air France-KLM S.A.
Société anonyme
Traded as Euronext: AF
Industry Aviation
Founded 2004
Headquarters Roissypôle
Paris–Charles de Gaulle Airport
Tremblay-en-France, France
Key people
Jean-Cyril Spinetta (Chairman and CEO)[1], Peter Hartman (Vice-Chairman)

Passenger flights: Air France, KLM, HOP!, KLM cityhopper, and Transavia

Cargo flights: KLM Cargo, Martinair Cargo and Air France Cargo
Aircraft maintenance: KLM UK Engineering LTD and EPCOR B.V.
Catering: Servair, Swissport, KLM Catering Services B.V., etc.
Services Airline services
Revenue 25.63 billion (2014)[2]
€24.912 billion(2014)[2]
Profit €-129 million (2014)[2]
Total assets €23.230 billion (2014)[2]
Total equity €632 million (2014)[2]
Number of employees
94,666 (2014)[3]
Website //

Air France–KLM is a Franco-Dutch airline holding company incorporated under French law with its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris. The group has offices in Montreuil, Seine-Saint-Denis, Paris, and in Amstelveen, Netherlands.[4][5]

Air France–KLM is the result of the merger in 2004 between Air France and KLM.

In 2008, it was the largest airline company in the world in terms of total operating revenues, and also the largest in the world in terms of international passenger-kilometres. The company's CEO since 17 October 2011 is Jean-Cyril Spinetta.[1]

Both Air France and KLM are members of the SkyTeam airline alliance. They offer a frequent flyer programme called Flying Blue. The company's namesake airlines rely on two major hubs: Amsterdam Airport Schiphol and Paris–Charles de Gaulle Airport.

Air France–KLM Airlines transported 87.3 million passengers in 2014.


  • History 1
    • Potential negotiations with Japan Airlines 1.1
  • Financial details 2
  • Subsidiaries 3
    • Wholly owned 3.1
    • Minority interests 3.2
    • Former subsidiaries 3.3
  • Fleet 4
  • Head office 5
  • References 6
  • External links 7


Air France–KLM was created by the mutually agreed merger between Air France and Netherlands-based KLM on 5 May 2004.

As a result of the deal, the French government's share of Air France was reduced from 54.4% (of the former Air France) to 44% (of the combined airline). Its share was subsequently reduced to 25%, and later to 18.6%.

At the time of the merger in May 2004, Air France and KLM combined offered flights to 225 destinations in the world. In the year ending 21 March 2003, the two companies combined transported 66.3 million passengers.

In October 2005, Air France Cargo and KLM Cargo, the two freight subsidiaries of the group, merged their commercial activities. The Joint Cargo Management Team now operates the organisation worldwide from the Netherlands.

In a 2007 opening for a majority takeover of the loss-generating Alitalia, Air France–KLM was one of three bidders, and was favoured by the board of Alitalia.[6] However, on 2 April 2008, it was reported that negotiations have been abandoned.[7] After the acquisition of Alitalia and Air One by Compagnia Aerea Italiana on 12 December 2008, Air France–KLM was interested once again in purchasing a participation in the new merged company. On 12 January 2009, Air France–KLM bought a 25% share in this company for €323 million.[8]

February 2011: Air France–KLM with Delta Air Lines are working together to examine a bid for Virgin Atlantic. At the present Richard Branson has 51 percent stake of Virgin Atlantic and the rest is held by Delta Air Lines.[9]

Air France–KLM was categorized as one of World's 10 safest airlines in August 2011.[10]

The company cancelled its flights to Iran as of April 2013.[11]

In December 2013, Air France–KLM sold its subsidiary CityJet to Intro Aviation.

Potential negotiations with Japan Airlines

Air France–KLM, along with its partner Delta Air Lines, were in talks about investing with Japan Airlines, which is part of the Oneworld alliance (rival to SkyTeam) but is experiencing financial problems. Air France–KLM, along with Delta and Delta's rival American Airlines (AMR Corporation; part of Oneworld) discussed investments for a sum of $200–300 million to help the financially struggling carrier, which is Asia's largest airline by revenue. The Ministry of Land, Infrastructure, Transport and Tourism of Japan had recommended Air France–KLM and/or Delta for being partners because of their "healthy" financial status compared to AMR Corporation.[12][13] Delta was also recommended because of its extensive Asian network acquired through the acquisition of Northwest Airlines; Korean Air, also a SkyTeam member, was also in talks with JAL on the negotiations. Air France, Alitalia, China Airlines, China Southern Airlines, Korean Air, and Vietnam Airlines are SkyTeam members that currently have codesharing with JAL.

On 7 February 2010 several news outlets reported that JAL will decide to keep its alliance with American Airlines and end talks with Delta. New JAL CEO Inamori and ETIC officials, according to the reports, decided that switching alliances (from Oneworld to SkyTeam) would be too risky and could hinder JAL's ability to turn around the airline quickly.

On 9 February 2010 JAL officially announced their decision to strengthen its partnership with American, which includes the joint application of antitrust immunity approval on transpacific routes. The airline will also fortify its relationship with other partners in the Oneworld alliance.[14]

Financial details

In May 2010, Air France–KLM announced increased losses (€1.56 billion for the year to 31 March 2010), and warned that the 2010 eruptions of Eyjafjallajökull had caused a further €160 million loss in the current financial year.

Air France–KLM is one of the largest airline companies in Europe, with 204.7 billion passenger-km in the year ending 31 March 2011.[15]

Private shareholders own 81.4% of the company with 37% held by former Air France shareholders and 21% held by former KLM shareholders. The Government of France owns the remaining 15.9%.

In June 2008, Air France–KLM agreed to pay $350 million to settle charges of cargo price fixing in an investigation conducted by the U.S. Justice Department. Cathay Pacific, Martinair Holland, and SAS Cargo Group also agreed to fines bringing the total to $504 million.[16] In November 2010, the European Commission fined Air France–KLM €310 million following another price-fixing investigation.[17]

The company spends about a third of its revenue on staff, its biggest expense, while Lufthansa only spends around a quarter, so to save around 800 million euros (app. 1.04 billion US$) annually over the next three years, the company will make a recruitment freeze which will lead to 2,000 job cuts in 2012.[18]

In February 2014, Air-France KLM invested $100 million in Brazilian airline Gol Linhas Aéreas Inteligentes in advance of the 2014 football World Cup.[19]

During 2015, Air France went through a severe business crisis and a pilot's strike, which made the French airline cut almost 3,000 jobs, KLM defer some of it's pending 787 deliveries, KLM's cargo subsidiary Martinair to retire six McDonnell-Douglas MD-11 airplanes, and Air France-KLM to suffer as a company.[20]


Air France–KLM

Wholly owned

Wholly owned subsidiaries of Air France–KLM include:

Air France–KLM also owns Cobalt Ground Solutions a ground handling company based in London Heathrow Airport. The company was formed on 1 April 2009 by merging the two ground services subsidiaries of Air France and KLM in the UK – formerly Air France Services Ltd (AFSL) and KLM Ground Services Ltd (KGS).

The group also owns Cygnific which is one of the biggest Sales & Service Centres of Air France–KLM. Cygnific is actually a full subsidiary of KLM Royal Dutch Airlines, operating as an independent company with its own business strategy, operational processes and human resources policy. Cygnific serves passengers and travel agents on behalf of KLM, Air France and Delta Air Lines.

Minority interests

Airlines in which Air France–KLM owns a minority interest:

Former subsidiaries

  • Cityjet: Air France–KLM used to own the entire company, until the sale to Intro Aviation, a German aviation holding company.
  • VLM Airlines: Air France–KLM merged the operations of this company with the ones from Cityjet. It was sold at the same time.


The fleet of Air France–KLM includes the fleets of its subsidiaries, the fleet of Air France incl. Air France Cargo (251), and the fleet of KLM incl. KLM Cargo (117). Furthermore, the fleets of HOP! (101), KLM cityhopper (48), incl. Transavia France (45) and Martinair Cargo excl. leases from KLM Cargo (6) are fully part of the company. The total number of planes in the fleet is 568 as of September 2014, this is including a cargo fleet (Air France Cargo, KLM Cargo and Martinair Cargo) of 14.

Head office

Head office of Air France–KLM in Roissypôle

Air France–KLM's head office is located in the Roissypôle complex on the grounds of Charles de Gaulle Airport and in Tremblay-en-France, near Paris.[21][22][23][24] The 130,000 square metres (1,400,000 sq ft) complex was completed in December 1995. The French firm Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO) managed the project. The architect was Valode & Pistre and the design consultants were and Sechaud-Boyssut and Trouvin. The project had a price of 137,000,000 euros.[23]


  1. ^ a b AP (17 October 2011). "Juniac replaces Gourgeon as Air France CEO". Yahoo! News. Retrieved 12 April 2012. 
  2. ^ a b c d e "AirFrance–KLM Fiscal year 2012" (PDF). Air France–KLM. Retrieved 22 February 2014. 
  3. ^ "AirFrance–KLM Registration document 2014" (PDF). Air France–KLM. Retrieved 30 July 2015. 
  4. ^ "Contact Us." Air France–KLM ONE. Retrieved on 18 June 2010. "AIR FRANCE office, Paris Global Corporate Sales, JH.TS 30, avenue Léon Gaumont 75985 Paris Cedex 20 France" and "KLM office, Amsterdam KLM Headquarters Global Corporate Sales, AMS/SG Amsterdamseweg 55 1182 GP Amstelveen The Netherlands"
  5. ^ "Montreuil et 6 secteurs." Montreuil, Seine-Saint-Denis. Retrieved on 18 June 2010.
  6. ^ "Alitalia favors Air France–KLM bid." CNN. Friday 21 December 2007. Retrieved on 3 February 2010.
  7. ^ "Alitalia boss quits as talks end." BBC. Wednesday 2 April 2008. Retrieved on 3 February 2010.
  8. ^ "Air France seen beating tough odds for Alitalia." Reuters. Friday 2 January 2009. Retrieved on 3 February 2010.
  9. ^ Air France, Delta to examine Virgin Atlantic bid
  10. ^ "World's Top 10 Safest Airlines Named". 30 August 2011. 
  11. ^ "KLM TO CEASE FLIGHTS TO IRAN IN APRIL". AP. Retrieved 12 January 2013. 
  12. ^ "Air France–KLM in talks to invest in JAL-source". Reuters. 15 September 2009. Retrieved 12 April 2012. 
  13. ^ "JAL alliance talks heat up with Air France–KLM entry". Reuters. 15 September 2009. Retrieved 12 April 2012. 
  14. ^ "Comments By American Airlines CEO Gerard Arpey on Japan Airlines Decision to Continue Membership in oneworld Alliance – 9 Feb 2010". 9 February 2010. Retrieved 12 April 2012. 
  15. ^ "Annual Report 2010-11" (PDF). Air France–KLM. Retrieved 15 November 2011. 
  16. ^ NPR: NPR News In Brief Archived 26 May 2008 at the Wayback Machine
  17. ^ "Eleven airlines fined in European cargo cartel investigation". Archived from the original on 12 November 2010. Retrieved 10 November 2010. 
  18. ^ "Air France to cut 2,000 jobs: report". Reuters. 14 December 2011. Retrieved 15 December 2011. 
  19. ^ "Air France-KLM gains Brazil foothold with $100 million Gol deal". Reuters. 18 Feb 2014. Retrieved 20 Feb 2014. 
  20. ^
  21. ^ "Legal Information." Air France–KLM. Retrieved on 3 February 2010.
  22. ^ "Plan interactif." Tremblay-en-France. Retrieved on 20 September 2009.
  23. ^ a b "AIR FRANCE HEAD QUARTERS – ROISSYPOLE." Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO). Retrieved on 20 September 2009.
  24. ^ "Roissy Charles-de-Gaulle." Tremblay-en-France. Retrieved on 20 September 2009.

External links

  • Corporation Website
  • Air France–KLM Financial page
  • Air France–KLM Corporate Authentication & Authorization Services
  • Air France–KLM Cargo
  • Bluenity
  • Air France–KLM Group Company profile from Yahoo!
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from World eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.