Air France–KLM S.A., also known as Air France–KLM Group, is a Franco-Dutch
airline
An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
incorporated under French law with its headquarters at
Charles de Gaulle Airport
Paris Charles de Gaulle Airport (french: Aéroport de Paris-Charles-de-Gaulle, ), also known as Roissy Airport or simply Paris CDG, is the principal airport serving the French capital, Paris ( and its metropolitan area), and the largest intern ...
in
Tremblay-en-France, near Paris. The group has offices in
Montreuil, Seine-Saint-Denis, Paris, and in
Amstelveen
Amstelveen () is a municipality in the province of North Holland, Netherlands with a population of 92.353 as of 2022. It is a suburban part of the Amsterdam metropolitan area.
The municipality of Amstelveen consists of the historical villages ...
, Netherlands. Air France–KLM is the result of the merger in 2004 between
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
and
KLM. Both Air France and KLM are members of the
SkyTeam airline alliance
An airline alliance is an aviation industry arrangement between two or more airlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airline codeshare connections within c ...
. The company's namesake airlines rely on two major
hubs,
Paris–Charles de Gaulle Airport
Paris Charles de Gaulle Airport (french: Aéroport de Paris-Charles-de-Gaulle, ), also known as Roissy Airport or simply Paris CDG, is the principal airport serving the French capital, Paris ( and its metropolitan area), and the largest intern ...
and
Amsterdam Airport Schiphol respectively. Air France–KLM Airlines transported 87.3 million passengers in 2014.
History
On 5 May 2004, Air France–KLM was created by the mutually agreed merger between Air France and Netherlands-based KLM. 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 17.6%. 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
Alitalia - Società Aerea Italiana S.p.A., operating as Alitalia (), was an Italian airline which was once the flag carrier and largest airline of Italy. The company had its head office in Fiumicino, Metropolitan City of Rome Capital. The ai ...
, Air France–KLM was one of three bidders, and was favoured by the board of Alitalia. However, on 2 April 2008, it was reported that negotiations have been abandoned. 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.
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.
Air France–KLM, along with its partner
Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
, were in talks about investing with
Japan Airlines
, also known as JAL (''Jaru'') or , is an international airline and Japan's flag carrier and largest airline as of 2021 and 2022, headquartered in Shinagawa, Tokyo. Its main hubs are Tokyo's Narita International Airport and Haneda Airport, as w ...
, which is part of the
Oneworld
Oneworld (stylised as oneworld; CRS: *O) is an airline alliance founded on 1 February 1999. The alliance's stated objective is to be the first choice airline alliance for the world's frequent international travellers. Its central alliance offic ...
alliance (rival to SkyTeam) but was experiencing financial problems. Air France–KLM, along with Delta and Delta's rival,
American Airlines
American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...
(
AMR Corporation
AMR Corporation was an airline holding company based in Fort Worth, Texas, which was the parent company of American Airlines, American Eagle Airlines, AmericanConnection and Executive Airlines. AMR filed for Chapter 11 bankruptcy protect ...
, part of Oneworld), discussed investments of $200–300 million to help the financially struggling carrier, which is Asia's largest airline by revenue. The
of Japan had recommended Air France–KLM and/or Delta for partners because of their "healthy" financial status, compared to AMR Corporation. Delta was also recommended because of its extensive Asian network, acquired through the acquisition of
Northwest Airlines
Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...
.
Korean Air
Korean Air Co., Ltd. (), operating as Korean Air (Korean Air Lines before 1984), is the flag carrier of South Korea and its largest airline based on fleet size, international destinations and international flights.
The present-day Korean Air ...
, also a SkyTeam member, was also in talks with JAL. Air France, Alitalia,
China Airlines
China Airlines (CAL; ) is the state-owned flag carrier of the Republic of China (Taiwan), and one of its two major airlines along with EVA Air. It is headquartered in Taoyuan International Airport and operates over 1,400 flights weekly (in ...
,
China Southern Airlines
China Southern Airlines Company Limited is an airline headquartered in Baiyun District, Guangzhou, Guangdong Province and is the largest airline in China. Established on 1 July 1988 following the restructuring of the CAAC Airlines that acqu ...
, Korean Air, and
Vietnam Airlines are SkyTeam members that currently have
code-sharing with JAL. On 7 February 2010 several news outlets reported that JAL decided to keep its alliance with American Airlines and end talks with Delta. According to reports, new JAL CEO Inamori and ETIC officials, 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 included the joint application of antitrust immunity approval on transpacific routes. The airline also planned to fortify its relationship with other partners in the Oneworld alliance.
In February 2011, Air France–KLM and
Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
were working together to examine a bid for
Virgin Atlantic
Virgin Atlantic, a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited, is a British airline with its head office in Crawley, England. The airline was established in 1984 as British Atlantic Airways, and ...
as
Richard Branson had a 51 percent stake and the rest is held by Delta.
In August 2011, Air France–KLM was categorized as one of World's 10 safest airlines.
In December 2013, Air France–KLM sold its subsidiary
CityJet
CityJet is an Irish regional airline with headquarters in Swords, Dublin. It was founded in 1992 and has gone through a series of corporate structures. Air France sold CityJet to ''Intro Aviation'' in May 2014; in March 2016 the airline was b ...
to Intro Aviation.
In early April 2016,
Alexandre de Juniac, Chairman and CEO since 1 July 2013 resigned and was replaced by
Jean-Marc Janaillac on 4 July 2016.
In January 2018 before the
French Senate
The Senate (french: Sénat, ) is the upper house of the French Parliament, with the lower house being the National Assembly, the two houses constituting the legislature of France. The French Senate is made up of 348 senators (''sénateurs'' a ...
, Jean-Marc Janaillac reported for 2017 a higher revenue due to a rising fleet utilisation and a faster growth to come, and a better
operating profit
In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses.
Operating income and ope ...
with 6% for the group (Air France 4%, KLM 9%) but lagging the 9% of
Lufthansa and 10 to 12% of
British Airways
British Airways (BA) is the flag carrier airline of the United Kingdom. It is headquartered in London, England, near its main hub at Heathrow Airport.
The airline is the second largest UK-based carrier, based on fleet size and passengers ...
, while he deplored
Paris-Charles de Gaulle
Paris Charles de Gaulle Airport (french: Aéroport de Paris-Charles-de-Gaulle, ), also known as Roissy Airport or simply Paris CDG, is the principal airport serving the French capital, Paris ( and its metropolitan area), and the largest intern ...
luggage handling and safety waiting lines, obstructing connections, and anticipating a difficult 2018 with rising
jet fuel prices and competition from Gulf carriers,
Turkish Airlines
Turkish Airlines ( Turkish: ''Türk Hava Yolları'') is the national flag carrier airline of Turkey. , it operates scheduled services to 340 destinations in Europe, Asia, Africa, and the Americas, making it the largest mainline carrier in the ...
, Chinese and Asian airlines, and
low-cost carriers, either
easyJet
EasyJet plc (styled as easyJet) is a British multinational low-cost airline group headquartered at London Luton Airport. It operates domestic and international scheduled services on 927 routes in more than 34 countries via its affiliate airli ...
,
Volotea
Volotea (stylised VOLOTEΛ) is a Spanish low-cost airline registered in Castrillón, Asturias, Spain, with bases in Spain, Italy, France and Greece.
History
Volotea was established by Alaeo S.L. from Barcelona, a company created by former Vue ...
,
Ryanair or
long haul
In aviation, the flight length refers to the distance of a flight. Commercial flights are often categorized into long-, medium- or short-haul by commercial airlines based on flight length, although there is no international standard definition and ...
.
![Delta Air Lines Airbus A330-323 N816NW and KLM Boeing 777-206ER PH-BQD at AMS 22OCT2014](https://upload.wikimedia.org/wikipedia/commons/c/c3/Delta_Air_Lines_Airbus_A330-323_N816NW_and_KLM_Boeing_777-206ER_PH-BQD_at_AMS_22OCT2014.JPG)
At the end of 2018 Air France–KLM will select its
medium-haul fleet replacement for
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
,
HOP!
Air France Hop, formerly branded HOP!, is a French regional airline operating flights on behalf of its parent company Air France. The airline was founded on 21 December 2012http://www.verif.com/societe/HOP!-790151716/ after the merger of Airlin ...
,
KLM and
Transavia
Transavia Airlines C.V., trading as Transavia and formerly branded as ''transavia.com'', is a Dutch low-cost airline and a wholly owned subsidiary of KLM and therefore part of the Air France–KLM group. Its main base is Amsterdam Airport Schi ...
, operating
Boeing 737 NG,
Airbus A320ceo family,
Embraer E-Jets,
Bombardier CRJ700 series and
Embraer 145. After renewing its long-haul fleet with the
787 Dreamliner and the
A350 XWB from 2019, specifications will be released in the first trimester, seeking proposals from
Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
,
Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and p ...
,
Bombardier Aerospace
Bombardier Aviation is a division of Bombardier Inc. It is headquartered in Dorval, Quebec, Canada. Its most popular aircraft included the Dash 8 Series 400, CRJ100/200/440, and CRJ700/900/1000 lines of regional airliners, and the newer CS ...
and
Embraer, aiming for lower
aircraft noise and
biofuel usage.
[
On 4 May 2018, Jean-Marc Janaillac announced that he will be resigning as CEO of Air France–KLM, after employees rejected new salary package.]
On 16 August 2018, the Board of Directors of Air France–KLM announced the appointment of Benjamin Smith as new CEO. He took up his duties at Air France–KLM on 30 September 2018.
On 26 February 2019, the Dutch government announced that it had "purchased 12.68 percent of shares in Air France-KLM" and "plans to build up its stake to around 14 percent".[The Washington Post](_blank)
/ref>
In May 2022, Air France–KLM signed a strategic partnership with CMA CGM
CMA CGM S.A. is a French container transportation and shipping company. It is the world’s 3rd largest container shipping company, using 257 shipping routes between 420 ports in 160 countries. Its headquarters are in Marseille, France The name ...
to develop their air cargo capacities together. CMA CGM is the parent company of CMA CGM Air Cargo which was founded in 2021. As part of the agreement CMA CGM
CMA CGM S.A. is a French container transportation and shipping company. It is the world’s 3rd largest container shipping company, using 257 shipping routes between 420 ports in 160 countries. Its headquarters are in Marseille, France The name ...
may also acquire a stake up to 9% in the Franco-Dutch airline group.
Corporate affairs
Business trends
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.
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
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United States ...
. Cathay Pacific, Martinair Holland
Martinair (legally ''Martinair Holland N.V.'') is a Dutch cargo airline headquartered and based at Amsterdam Airport Schiphol and a subsidiary of Air France–KLM. The airline was founded in 1958 by Martin Schröder. Since 2011, Martinair has o ...
, and SAS Cargo Group
SAS AB (Scandinavian Airlines System Aktiebolag), trading as SAS Group, is an airline holding company headquartered in the SAS Frösundavik Office Building in Solna Municipality, Sweden. It is the owner of the airlines Scandinavian Airlines and S ...
also agreed to fines bringing the total to $504 million. In November 2010, the European Commission fined Air France–KLM €310 million following another price-fixing investigation.
The company spends about a third of its revenue on staff, its biggest expense, while Lufthansa only spends around a quarter, so to save around 800 million euros (app. 1.04 billion US$) annually over the next three years, the company will make a recruitment freeze which will lead to 2,000 job cuts in 2012.
In February 2014, Air-France KLM invested $100 million in Brazilian airline Gol Linhas Aéreas Inteligentes in advance of the 2014 football World Cup.
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 its pending 787 deliveries, KLM's cargo subsidiary Martinair
Martinair (legally ''Martinair Holland N.V.'') is a Dutch cargo airline headquartered and based at Amsterdam Airport Schiphol and a subsidiary of Air France–KLM. The airline was founded in 1958 by Martin Schröder. Since 2011, Martinair has o ...
to retire six McDonnell-Douglas MD-11 airplanes, and Air France–KLM to suffer as a company.
Ownership
As of July 2022, the shareholding structure of the Group is:
Head office
Air France–KLM's head office is located in the Roissypôle complex on the grounds of Charles de Gaulle Airport
Paris Charles de Gaulle Airport (french: Aéroport de Paris-Charles-de-Gaulle, ), also known as Roissy Airport or simply Paris CDG, is the principal airport serving the French capital, Paris ( and its metropolitan area), and the largest intern ...
and in Tremblay-en-France, near Paris.[AIR FRANCE HEAD QUARTERS – ROISSYPOLE]
" Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO). Retrieved on 20 September 2009. The 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 amounted to a cost of 137,000,000 euros.
Subsidiaries
Wholly owned
Wholly owned subsidiaries of Air France–KLM include:
* Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
** Air France Cargo
** Air France Hop
** Transavia France
Transavia Airlines S.A.S., trading as Transavia France and formerly branded as ''transavia.com France'', is a French low-cost airline owned by Air France S.A. & Transavia Airlines C.V. based at Paris-Orly Airport. It shares its corporate desig ...
(96%)
* KLM
** KLM Cargo
** KLM Cityhopper
** KLM Asia
** Martinair
Martinair (legally ''Martinair Holland N.V.'') is a Dutch cargo airline headquartered and based at Amsterdam Airport Schiphol and a subsidiary of Air France–KLM. The airline was founded in 1958 by Martin Schröder. Since 2011, Martinair has o ...
** Transavia
Transavia Airlines C.V., trading as Transavia and formerly branded as ''transavia.com'', is a Dutch low-cost airline and a wholly owned subsidiary of KLM and therefore part of the Air France–KLM group. Its main base is Amsterdam Airport Schi ...
*** Transavia France
Transavia Airlines S.A.S., trading as Transavia France and formerly branded as ''transavia.com France'', is a French low-cost airline owned by Air France S.A. & Transavia Airlines C.V. based at Paris-Orly Airport. It shares its corporate desig ...
(4%)
Until January 2017, Air France–KLM also fully owned Cobalt Ground Solutions the third largest ground handling
In aviation, aircraft ground handling defines the servicing of an aircraft while it is on the ground and (usually) parked at a Gate (airport), terminal gate of an airport.
Overview
Many airlines subcontract ground handling to airports, han ...
company based at London Heathrow Airport
Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others be ...
. 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). Cobalt Ground Solutions was sold to Groupe CRIT, who purchased 100% of the company through its subsidiary Groupe Europe Handling.
Air France Services Ltd (AFSL) was one of the major ground handling companies at Heathrow airport. AFSL was created on 15 January 1997 and was in the beginning a partnership between Air France and Servisair Ltd. Servisair then decided to pull out.
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
In accounting, minority interest (or non-controlling interest) is the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is generally less than 5 ...
:
* Air Corsica
''Compagnie Aérienne Corse Méditerranée S.A.E.M.'' ( co, Cumpagnia Aerea Corsa Mediterrania), trading as Air Corsica (formerly ''CCM Airlines''), is the flag carrier of the French insular region of Corsica, with its head office on the ground ...
11.95%
* Air Côte d’Ivoire 20%
* Air Mauritius 4.89%
* Air Tahiti
Air Tahiti is a French airline company which operates in French Polynesia, France. Its main hub is Faa'a International Airport. It is the largest private employer in French Polynesia.
Company history
Early Seaplane Operations
The company w ...
7.48%
* Kenya Airways
Kenya Airways Ltd., more commonly known as Kenya Airways, is the flag carrier airline of Kenya. The company was founded in 1977, after the dissolution of East African Airways. Its head office is located in Embakasi, Nairobi, with its hub a ...
7.95%
* Air Calédonie 2.09%
* Gol Transportes Aéreos
Gol may refer to:
Places
*
* Gol, Gilan, a village in Gilan Province, Iran
* Gol, South Khorasan, a village in South Khorasan Province, Iran
* Gol, Bukan, a village in West Azerbaijan Province, Iran
* Gol, Chaldoran, a village in West Azerbaijan ...
1.50%
* Royal Air Maroc
Royal Air Maroc (; ar, الخطوط الملكية المغربية, , literally ''Royal Moroccan Lines'' or ''Royal Moroccan Airlines''; ber, ⴰⵎⵓⵏⵉ ⴰⵢⵍⴰⵍ ⴰⴳⵍⴷⴰⵏ ⵏ ⴰⵎⵓⵔⴰⴽⵓⵛ, ''Amuni Aylal Age ...
1.25%
* NS International (formerly NS Hispeed, high-speed rail connections linking Amsterdam (Schiphol) to Brussels and Paris) 10%
Former subsidiaries
* Cityjet
CityJet is an Irish regional airline with headquarters in Swords, Dublin. It was founded in 1992 and has gone through a series of corporate structures. Air France sold CityJet to ''Intro Aviation'' in May 2014; in March 2016 the airline was b ...
: Air France–KLM used to own the entire company, until the sale to Intro Aviation, a German aviation holding company.
* VLM Airlines
VLM Airlines was a Belgian airline offering scheduled, charter and ACMI services. It was headquartered at Antwerp International Airport in Deurne. It ceased operations on 31 August 2018. It is not to be confused with its Belgian sister airline ...
: Air France–KLM merged the operations of this company with the ones from Cityjet. It was sold at the same time.
* Joon: Air France–KLM merged the company back into Air France in June 2019
References
External links
*
Air France–KLM Corporate Authentication & Authorization Services
from Yahoo!
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Manage ...
{{DEFAULTSORT:Air France-Klm
Airline holding companies
Airlines for Europe
Dutch companies established in 2004
French companies established in 2004
Holding companies of France
Holding companies established in 2004
Companies listed on Euronext Paris
Government-owned companies of France
CAC Mid 60