Air France-KLM Business Model
A full service network carrier’s business model is typically based upon the operations of a hub-and-spoke route network (Vespermann & Holztrattner 2010). Air France-KLM group currently operates the largest network between Europe and the rest of the world. The network is coordinated around the two intercontinental hubs of Roissy-Charles de Gaulle and Amsterdam-Schiphol airports. These two hubs are organised in waves known as banks, combine connecting with point-to-point traffic. Air France-KLM group has a fleet of 573 aircraft which serves 253 destinations in 105 countries worldwide.
Created by the merger of Air France and KLM in 2004, the Air France-KLM Group focuses its activities in 3 main areas: passenger, cargo and aeronautical maintenance. The passenger business is Air France-KLM’s main activity, contributing some 80% of the Group’s revenues. As a FSNC, the Group offers all type of route network including short, medium and long-haul. In which, the short and medium-haul network is a cornerstone of the Group’s development as its profitability has seen a significant deterioration since the 2009 crisis. Therefore, Air France-KLM is now offering new services to Business and Premium Economy customers together with new catering. Passengers now have access to catering inspired by the service on long-haul flights. Air France and KLM also continue to improve their levels of in-flight service. The Economy class will be innovated and upgraded with new in-flight entertainment systems. While the Business class offers its passengers a high standard of comfort and greater privacy with a redesigned World Business Class cabin including new seats which convert into fully flat beds, a choice of meal tray and time of meal service based on their individual needs. To facilitate and improve the airport experience for customers, Air France and KLM are developing the use of new technologies to enable boarding autonomy and streamline the baggage drop-off process. In June 2012, the two
Created by the merger of Air France and KLM in 2004, the Air France-KLM Group focuses its activities in 3 main areas: passenger, cargo and aeronautical maintenance. The passenger business is Air France-KLM’s main activity, contributing some 80% of the Group’s revenues. As a FSNC, the Group offers all type of route network including short, medium and long-haul. In which, the short and medium-haul network is a cornerstone of the Group’s development as its profitability has seen a significant deterioration since the 2009 crisis. Therefore, Air France-KLM is now offering new services to Business and Premium Economy customers together with new catering. Passengers now have access to catering inspired by the service on long-haul flights. Air France and KLM also continue to improve their levels of in-flight service. The Economy class will be innovated and upgraded with new in-flight entertainment systems. While the Business class offers its passengers a high standard of comfort and greater privacy with a redesigned World Business Class cabin including new seats which convert into fully flat beds, a choice of meal tray and time of meal service based on their individual needs. To facilitate and improve the airport experience for customers, Air France and KLM are developing the use of new technologies to enable boarding autonomy and streamline the baggage drop-off process. In June 2012, the two
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