Air-France KLM restructuring in bid to achieve ‘sustainable profitability’

Darren Wood
By Darren Wood November 6, 2019 08:48

Air-France KLM restructuring in bid to achieve ‘sustainable profitability’

Air France-KLM has outlined its plan to re-optimise its group’s strategic priorities and its financial trajectory over the next five years.

The plan includes restoring sustainable profitability building around four main strategic priorities: optimising the operational model, refocusing passenger revenue growth around the most profitable segments, developing initiatives on customer data, maintenance and cargo, and pragmatically analysing consolidation opportunities, the airline said.

Benjamin Smith, CEO of Air France-KLM Group, commented: “In a competitive and fast-transforming environment for European airlines, the Air France-KLM Group has all the assets to regain its leadership position.”

“Thanks to the dedication of our employees at Air France, KLM and Transavia, since the end of 2018 we have been able to establish the fundamentals of our go forward plan: simplifying our fleet, clarifying our brand and market positioning, and unlocking significant commercial and operational flexibility thanks to new labour agreements.

“This is the starting point of a strategy that will allow Air France-KLM to reinvent itself, creating value for all key stakeholders. We will optimize our operational model and increase revenues to significantly improve our operating margin.

“Everything we do will support our goal of remaining an industry pioneer as the airline group most committed to global environmental sustainability.”

The airline will look to manage its fleet and product in a more flexible and optimal way, simplifying each airline’s internal processes; and accelerating fleet renewal.

Darren Wood
By Darren Wood November 6, 2019 08:48