...Business Ethics : Air France Finance and competitiveness are today the two words at the heart of preoccupations for all Air France executives. Air France is the main French airline company. Founded in 1933, it provides transportation of passengers, cargo, maintenance, and maintains aircraft around the world. It joined with the Dutch company named KLM in 2004 and became together the fifth air carrier in the world. Air France KLM has about 77.3 million passengers each year, more than 95,000 employees and 25.5 billion turnover in 2013, so it must implement a very specific organization in order to better manage its business. With the rise of low cost airline and the economic crisis raging, Air France KLM must pay close attention to the management of his company. Many stakeholders are involved in the good functionment of Air France KLM, that’s why they have an important place in the company. In recent weeks, Air France KLM has been affected by several strikes of its employees which caused Air France to lose a lot of money (until 500 million euros) and created lowers credibility to its loyal customers. How Air France KLM has to face all these threats and what solutions could be put in place to prevent these risks ? First of all, we will see the main stakeholders present in this company and the actions to take in place to manage them. Finally, we will find different preventions to avoid any strikes and minimize risk. Company’s stake holders identification...
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...[Air France-KLM will lift capacity no more than 2 percent in each of the next three years, with fleet spending also reined in.] * Jean-Cyril Spinetta, recalled last years as chief executive officer as slumping profit forced Pierre-Henri Gourgeon’s exit, froze pay and hiring in January and is in talks with unions over a 2 billion-euro annual saving he says is needed to secure the long-term future. The loss comes after German rival Detsche Lufthansa AG Airline yesterday posted a 13 million-euro annual deficit as its soon-to-be-sold U.K. division BMI clipped earnings. * * | | | | Unit 4 brochure [Adres][Postcode en plaats] | | Air France-KLM Is a French-Dutch airline holding company incorporated under French law with it’s headquarters at Paris offices in Montreuil (France) and Amstelveen (Netherlands)Air France-KLM Group (AF), Europe’s biggest airline, reported a full-year loss as a sluggish economy and high fuel costs.crimped earnings and said results for the current six months will show a further deterioration.The Paris-based company had a net loss of 809 million euros ($1.06 billion) versus a pro forma 289 million-euro profit in 2010, it said in a statement. Analysts had predicted a loss of 669 million euros, based on 12 estimates in a Bloomberg survey. KLM Service CentreTell: +44 (0) 871 231 000010p p/min from BT landlines - other networks varyOpening Hours: Monday – Sunday 24 Hours | | | | | | | Unit 4 brochure | Royal Dutch Airlines | | ...
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...Medium-haul business is one of two areas that Air France-KLM identified as "still in trouble" when third-quarter results were unveiled on 31 October. The other is cargo. But where cargo is seen as in need of group-wide attention, it is Air France, rather than the Dutch partner, that must reform medium-haul operations. Why even bother? It's a question Air France-KLM chief executive Alexandre de Juniac addressed during the results briefing. First of all, he noted, the medium-haul network is a "very important" source of revenue, generating €7.5 billion last year. Secondly, it feeds the hubs. Last year, hub feeding accounted for 59% of revenues from medium-haul, to which a total of 384 aircraft are allocated. There are two other subsectors within medium-haul, namely French point-to-point operations (30%) and the leisure business (11%), and their fortunes are sharply divergent. The airline deems domestic point-to-point services to be "essential to maintain market presence", but acknowledges them to be "most affected by the economic crisis in Europe and the market shift". Leisure, on the other hand, is "the only part of the [medium-haul] market which is growing", says de Juniac. So what is to be done? Air France has selected a specific strategy for each of the three subsectors. In the hub-feeding categories, the focus is on Paris Charles de Gaulle, where both staff and aircraft numbers are now to be cut beyond what was previously envisioned as part of the Transform...
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...------------------------------------------------- Competing through alliances in the airline industry: The AIR FRANCE- KLM/DELTA AIR LINES JOINT VENTURE In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue and cost sharing joint ventures that include all transatlantic routes of the two airlines. The alliance formed sales over 12 billion euros, and accounted for about 30% of all North Atlantic passenger business. The case also provides information on joint ventures, and how alliances are used strategically to enhance revenues and reduce cost. The case also discuss how collaboration can be structured and governed to achieve outcomes, and how strategic decisions by one alliance partner can affect the stability of the alliance. The issue of the case is if whether Air France KLM should reconsider their alliance with Delta Airlines, due to some of the independent decisions made within the alliance. Some of the external factors that affected the company...
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...Air France Case Brief Executive Summary Rob Griffin, the senior vice president and U.S. director of search for Media contacts, a media consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France as the company seeks to compete in the hyper-competitive U.S. market. Even though Griffin is satisfied with the performance of his company, he wants to make the team to remain the leading position and provide the results that Air France wanted. At the time of the case, SEM has become an advertising phenomenon, with North American advertisers spent $ 9.4 billion in the SEM channel, up to 62% in 2005. In the past, Media contacts h had concentrated on Google, Microsoft, and Yahoo for the search engine marketing campaigns, with the emergence of metasearch sites like Kayak.com, Griffin faces new questions: “Should Media Contacts recommend a uniform strategy for Air France across search engine publishers? Or would it be more effective to tailor each publisher strategy to maximize return on investment? How can campaigns be improved to increase overall value gained from investment with a search engine publisher? How should future SEM campaigns be structured?” This report aims to provide answers to the above questions. Current Situation E-commerce has emerged as a fast growing sales medium, particularly in travel where the product is intangible. The travel industry comprised three types of online service providers. The direct websites are owned by...
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...November 21, 2013 AC 205 Air France-KLM Case Part A: Financial Statements, Income Measurement, and Current Assets A1. Numbers were found from AirFrance’s consolidated financial statements. A. Total revenues for fiscal year ended March 31, 2011 were €23,622 million. B. Income from current operations for fiscal year ended March 31, 2011 were €122 million. C. Net income (AF equity shareholders) for fiscal year ended March 31, 2011 were €613 million. D. Total assets for fiscal year ended March 31, 2011 were €28,969 million. E. Total equity for fiscal year ended March 31, 2011 were €6,906 million. A2. AF’s basic earnings per share for the 2011 fiscal year was €2.08. This was found in AF’s consolidated income statement. A3. As stated in note 3.1.1 the accounting principles that were used to prepare AF’s financial statements were International Financial Reporting Standards as adopted by the European Commissions. Under those accounting principles AF’s financial information would differ in certain respects from the IFRS as published by the IASB. The Group has, however, determined that the financial information for the periods presented would not differ substantially had the Group applied IFRA as published by the IASB. This is saying that IFRS as adopted by EU can differ from IFRS as published by IASB. This would make financial information different for a company that follows IFRS as publish by IASB, but in this case it would not be material. A4. As found...
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...Consolidated Income Statement iii Appendix 3: Consolidated Statement of Comprehensive Income iv Appendix 4: Consolidated Statement of Changes in Equity iv Appendix 5: Consolidated Cash Flow Statement v * Table of Figures Figure 1: Share Performance 1 Figure 2: Composition of Current Assets 3 Figure 3: Composition of Non-current Liabilities 3 Figure 4: Calculation of Operating Income 6 Figure 5: Calculation of Operating Cash Flow 6 Figure 6: Operating segments & Reporting segments 8 * Oversight of the firm and industry Air France, french company, borned in 1933 by the fusion of 4 companies, Air Orient, Air Union, Lignes Farman and C.I.D.N.A. decided to join the 3 of may 2004, KLM, Dutch Airline, to be the first European position for the transport of passenger and to be the first in the world for the fret. Air France KLM group has more than 100000 employees all over the world (source Air France KLM) and is...
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...E-Business advantages for Airline Industries Analysis of the supply chain structure of the Airline Industry to highlight the advantages of the e–Business systems Index E-Business advantages for Airline Industries ................................................................................................ 1 Introduction and scope ............................................................................................................................... 2 The Airline Industry .................................................................................................................................. 2 External actors ........................................................................................................................................... 2 I.C.A.O................................................................................................................................................... 3 I.A.T.A. .................................................................................................................................................. 3 EUROCONTROL.................................................................................................................................. 4 The digital flight, how the e-business revolutionized the Airline Industry ...............................................4 Can we make the journey experience different? Should we do it?........................................................ 5 ...
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...French used to get 38% of the total benefice, 20% was for the British and 4% for the Spansih The first flight of an Airbus plane was on May 12th.1979 with Air France. The plane made a return trip Toulouse-Paris. The most famous plane was A320. There were 10,994 orders for this plane and only 6,285 of them are delivered for the moment. The last plane Airbus launched is the A350 XWB. There are already 750 orders from 39 customers worldwide Airbus usually sales its planes to normal flight companies like Air Austral, Air France, Amedeo, Asiana, Emirates; but also Jetliners and private owner (Arabic prince …) and the industry. II. Boeing The first plane of Boeing was a Seaplane, the Boeing Model I, on June 15th, 1916. The New-Zeland Flying School was the first company to pilot the plane with two crews at a maximum speed of 121 km/h. 2 The most famous plane of Boeing is the B-737. The first flight was in 1968 with Lufthansa Company. Nowadays, 8237 plane were sell and this plane is used by Southwest Airlines, Ryanair, United Airlines... Their last plane is the B747-8. The newest and most modern plane. The first flight of Boeing was on 2010 and the first company who used this plane was Cargolux in 2011. Some companies and luxurious companies fly with Cathay Pacific Cargo, Lufthansa, Atlas Air or Cargolux Airlines... The clients of Boeing are so various. The first client was the US Navy. Nowadays,...
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...secondary suppliers might be exploited to meet specifications and requirements. The wiring of the new aircraft will also be quite complex, consisting of nearly 100,000 wires bundled into 530km of cables held by 40,000 connectors. The design of the aircraft necessitates a switch from copper to aluminum wiring, the latter requiring a larger bend radius that could make it more difficult to maneuver around corners within an aircraft and could entail rerouting of some harnesses. Manufacturing and design of the A3XX will be spread across 85 countries, dozens of Airbus facilities, and hundreds of suppliers. A single chief engineer will be made responsible for the entire program across the four operating divisions that have been independently managed in France, Germany, the UK, and Spain. Nine aircraft component management teams (ACMTs) will be responsible for the development of the major elements of the A3XX. To ensure smooth coordination...
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...Airline Global Alliances May 11, 2015 Table of Contents Abstract 3 Introduction of Strategic Alliances in Airline Industry 4 Evaluation of Alliances in Airline Industry 4 Purposes of Alliance between Airlines 5 Disadvantage of Alliance between Airlines 6 Major Airline Alliances in the World 6 Alliances help Airlines to Achieve Comparative Advantage 7 Sky Team Alliance 8 Airline Alliances Enhance the CSR 9 Conclusion 10 References 12 Abstract Now a days the term global alliance is widely used in every business, but its presence is more significant in airline industry. The strategic alliances in airline industry are global in nature. The past deregulation impacted on strategic alliances positively, industry is freer to set routes and cooperation’s, due to oil price hike the cooperation of airline firms was unavoidable. The alliances help generating traffic between an airline and other parties that are partner. The European alliances were threatened by US alliances; in such scenarios United Airlines and British Airlines came in contract to avoid threats from US airlines. The benefits of strategies alliances are to gain foothold in any country like many airlines did in Europe, while at the same time is to establish global presence. Strategic alliance and mergers of firms acts as marketing technique in airline industry. Many of the European airlines bought stakes from the...
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...Five –Forces Model of Competition It is important to analyze the competitive forces in an industry’s environment in order to identify the opportunities and threats confronting a company. The competitive forces operating in a company’s industry are never the same for one industry to another. The most powerful and widely used tool for systematically diagnosing the principal competitive forces in a market and assessing the strength and importance of each is the ‘five forces model of competition’. Rivalry among competing firms: Medium pressure There are many competitors. Easy jet, Air Berlin and German wings those company are strongest competitor of Ryanair because they follow same strategy low cost. Weakest competitor are Monarch Airlines and Tita. There are another some company like British Airways, Lufthansa and Air France this types companies run by government and they have enjoy lots of facilities . Bargaining power of suppliers: Low Boeing is the main suppliers of Ryanair. There are two suppliers are Boeing and Airbus. Switching costs from one supplier to the other is high because all mechanics and pilots would have to be retrained. Fuel price increasing and this sector is not control. Entry of new competitors: Low The threat of new entrants is low for Ryanair due to the significant entry barriers associated with entering airline sector that include economies of scale capital requirements, access to distribution channels etc. Some barriers are: 1. Commission for...
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...FOM Fachhochschule für Oekonomie & Management Frankfurt University of Applied Sciences Master of Business Administration First Semester Module: Economics Assignment Two: Economics of Alliance Airlines Prof. Dr. Andreas Löhr Author: Boris Olarte Arque Student id: 252547 Frankfurt am Main, 16th July 2010 Table of Contents List of Abbreviations III List of Figures IV 1 Introduction 1 2 Capital Investment 2 2.1. The Airline Market 4 2.2 High Cash Flow 9 3 Liberalization 10 4 Conclusion 11 List of references 14 Internet Sources 14 Further Literature 14 Appendix 15 List of Abbreviations ASM: Available Seat Mile OAG: Official Airline Guide IATA International Air Transportation Association ICAO International Civil Aviation Organization List of Figures Figure 1: Demand Curve….………....…..................................................................3 Figure 2: Supply Curve……………………….………….........................................4 Figure 3: One World airline members ……………………......................................5 Figure 4: SkyTeam airline members ……………………........................................6 Figure 5: Star Alliance Statistics…………………………………………….……..7 Figure 6: Market Share of the Alliances…................................................................8 1 Introduction The airline industry is classified in the third economic sector the same as services because that is what is about. Airlines perform...
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...Air-freight Industry Activity A British Airways PLC Activities The Company is engaged in the operation of international and domestic scheduled and charter air services for passengers , cargo and mail. Structure of the company: British Airways is one of the top ten airlines in the world and serves 200 destinations in more than 80 countries. The airline also operates a freight handling centre, Ascentis, which is considered as one of the most advanced freight-handling facilities in the world. Virgin Atlantic Airways Ltd Activities Virgin Atlantic Airways is engaged in the operation of scheduled air services for the carriage of passengers and freight. Structure of the company: Virgin Atlantic was founded in 1984, and is one of UK’s second-largest long-haul carrier airlines serving the world’s major cities. The company’s schedule includes twenty one (21) destinations from its operational centres at Heathrow and Gatwick airports. Global Supply Systems Ltd Activities Global Supply Systems Ltd is a dedicated operation company using only freight aircraft to carry goods without having any dedicated scheduled flights. Structure of the company: The Company is a subsidiary of River Don ltd. Global Supply Systems ltd is majority owned by a British entrepreneur, while Atlas Air inc has a minority shareholding in the company. Channel Express(Air Services ) Ltd Activities The Company operates cargo aircraft on charter contracts in Europe. Structure of the company: The...
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...sustainability as 5 different things; Holistic planning, one should have a right to be involved in any planning; Ecological processes preserved, one should have the right to have a healthy life; Inter generational equality, what one does today should not affect tomorrow; Fairness and opportunity, one should be entitle to a job anywhere and finally, Ecological Productivity should be preserved, one should not do anything to reduce the variety of natural life. Sustainable Aviation (2011) defines sustainable aviation as a long term approach to dealing with the 5 concepts mentioned in the Brundtland Report and ensuring a more sustainable industry, SA evaluates various sustainability problems the industry faces such as social issues, noise nuisance, air quality, natural resources, etc and it works with UK airlines to try and develop some of the key sustainability issues within the industry. Daley, B. (2010:165) states there are different concepts which elaborate on what sustainability is in the tourism industry and looks different methods which can be carried out for companies to be more sustainable e.g. UN Conference on Ecological sustainable development started in 1972 and was where the concept of sustainable tourism began. Since then, Daley, B. (2010:65) explains...
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