Air France - KLM SA (OTCPK:AFLYY, AFRAF, Euronext:AF) Company Profile
Established in 1919, Air France - KLM SA (OTCPK:AFLYY, AFRAF, Euronext:AF) is a large aviation group formed by the merger of Air France and KLM Royal Dutch Airlines. It holds an important position in the global fields of airline passenger transport, cargo transport, and maintenance services, and has undergone several changes in shareholdings and business adjustments.
I. Company Introduction
Air France - KLM SA was founded in 1919, with its headquarters located in Paris, France, and it has 73,686 full-time employees. Its subsidiaries provide airline passenger transport, cargo transport services, and aviation maintenance services in metropolitan France, the Benelux Economic Union, other parts of Europe, and internationally.
Official Website: https://www.airfranceklm.com/en
II. Main Business Segments
1. Airline Passenger Transport Services: Through its subsidiaries such as Air France and KLM Royal Dutch Airlines, it provides a wide range of route services for passengers around the world, connecting numerous destinations worldwide.
2. Airline Cargo Transport Services: Air France Cargo and KLM Cargo are responsible for the group's cargo business. After merging their commercial activities, the combined cargo management team conducts global operations in the Netherlands.
3. Aviation Maintenance Services: It provides aircraft maintenance and other related services for the group itself and potentially external customers, ensuring the safety and reliability of aviation operations.
III. Technological and Business Advantages
1. Strong Route Network: Relying on two major hubs, Paris-Charles de Gaulle Airport and Amsterdam Schiphol Airport, its routes cover 225 destinations globally, providing passengers with convenient transfer and direct flight services.
2. Brand Influence: Both Air France and KLM Royal Dutch Airlines have high brand awareness. After the merger, the group has extensive influence in the global aviation industry.
3. Alliance Cooperation: As a member of SkyTeam, it cooperates with many airlines, further expanding its route network and service scope.
Overview of Air France Subsidiaries
Wholly-owned Subsidiaries of Air France - KLM
- Air France (Air France)
- Air France Cargo
- Air France Hop
- Transavia France (96%)
- KLM (KLM Royal Dutch Airlines)
- KLM Cargo
- KLM Cityhopper
- KLM Asia
- Martinair
- Transavia
- Transavia France (4%)
Companies in Which Air France - KLM Holds Minority Shares
- Air Corsica 11.95%
- Air Côte d’Ivoire 20%
- Air Mauritius 2.78%
- Air Tahiti 7.48%
- Kenya Airways 7.95%
- Air Calédonie 2.09%
- Gol Transportes Aéreos 1.19%
- Royal Air Maroc 1.25%
- NS International (formerly NS Hispeed, a high-speed rail connecting Amsterdam (Schiphol Airport) with Brussels and Paris) 10%
IV. Development History
| Time | Key Events |
|---|---|
| 1919 | The company was established |
| May 5, 2004 | Air France and KLM Royal Dutch Airlines merged to create Air France - KLM. The French government's share in the merged airline decreased from 54.4% to 44%, then to 25%, and further to 17.6% |
| October 2005 | Air France Cargo and KLM Cargo merged their commercial activities |
| 2007 - 2009 | Participated in the acquisition-related activities of Alitalia. Participated in the bidding in 2007, abandoned the negotiations in April 2008, showed interest again in December 2008, and purchased a 25% stake in the company for 323 million euros in January 2009 |
| 2008 | Became the airline with the largest total global operating revenue and the largest number of international passenger-kilometers |
| 2008 - 2010 | Participated in investment negotiations for Japan Airlines with Delta Air Lines, etc. In February 2010, Japan Airlines decided to maintain its alliance with American Airlines and ended the negotiations with Delta |
| February 2011 | Conducted joint research with Delta Air Lines on the acquisition of Virgin Atlantic |
| August 2011 | Was listed as one of the 10 safest airlines in the world |
| December 2013 | Sold its subsidiary CityJet to Intro Aviation |
| Early April 2016 | Alexandre de Juniac resigned, and Jean - Marc Janaillac took over as Chairman and CEO on July 4, 2016 |
| July 28, 2017 | Delta Air Lines and China Eastern Airlines invested 751 million euros to acquire a 10% stake, and each appointed a director |
| January 2018 | Jean - Marc Janaillac reported the revenue growth and operating profit situation in 2017 and mentioned the competition and difficulties faced |
| May 4, 2018 | Jean - Marc Janaillac resigned as CEO because employees rejected the new compensation plan |
| August 16, 2018 | The board of directors appointed Benjamin Smith as the new CEO, who took office on September 30 |
| End of 2018 | Planned to select a replacement plan for the medium-haul fleet and sought proposals from companies such as Airbus and Boeing |
| January 10, 2019 | Air France closed the low-cost airline HOP!, integrating its aircraft and crew into the Air France fleet |
| February 26 - 27, 2019 | The Dutch government purchased a 12.68% stake in the group and planned to increase it to about 14% |
| May 2022 | Signed a strategic partnership with CMA CGM, and CMA CGM may acquire up to a 9% stake in the group |
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