...expectation of stakeholders by putting away such measures as revenues, profit and legal obligations. Community development, welfare, human rights and ethical conduct are key factors which come under the CSR umbrella’ (Laurie J. Mullins). I would like to discuss the CSR issues in Aviation Industry that’s why I have chosen Air France-KLM and Ryanair. 1.2 Air France-KLM Overview: Air France and KLM merged together in 2004 to form Air France-KLM Group while both airlines operate individually to retain their brands and identity (Air France-KLM CSR Report 2010). Air France was elected best airline of the year 2010 in Business Travel Awards (The Financial). Air France-KLM is the only airline which is selected in Dow Jones Sustainability Index in 2008.This group is the biggest in the whole world according to their profit growth which is €24.7 billion in 2008-2009 and €21.0 billion in 2009-2010.The passenger business, with €16.28 billion of revenues, makes the Group the global leader in both long and medium-haul passenger transportation and contributes some 80% of total revenues and second largest in terms of passenger carrier which is 71.4 million (Air France-KLM Financial Report 2010).Despite of its very difficult financial...
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...pursuing a strategy of profitable growth, founded on respect for our employees, shareholders and the environment. Our position as world leader in air transport gives us responsibilities and encourages us to set ever-higher standards of customer service, financial performance and social and environmental commitment. 2006-07 Contents At a glance ••• 1 Chairman’s message ••• 2 Key figures ••• 4 A contributor to the economy ••• 8 Interview with Jean-Cyril Spinetta and Leo van Wijk ••• 10 Passenger activity ••• 14 SkyTeam ••• 26 Cargo activity ••• 28 Maintenance activity ••• 34 Corporate governance ••• 42 Being a shareholder ••• 50 Sustainable development ••• 58 Consolidated financial statements ••• 64 Glossary ••• 69 Additional information on the Air France-KLM group can be found in the 2006-07 reference document on the website, www.airfranceklm-finance.com, or on request. 2006-07 At a glance Global leader 240 105 3 73.5 1.4 900 destinations in businesses million tons of cargo transported 1 countries million passengers carried aircraft maintained Profitable growth 23.1 billion euros of revenues billion euros of operating income employees 1.2 103,000 2 Dear Shareholder, This financial year draws to a close the first phase of the merger between Air France and KLM which has resulted in significant value creation for the Group and for our shareholders. Within a context characterized by a high oil price, our profitable growth strategy has enabled...
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................................................................................2 1.2 Mission Statement...............................................................................................................2 1.3 Service concept....................................................................................................................2 1.4 Core and supplementary services........................................................................................3 1.5 Main customers and customers role in service process.......................................................3 1.6 Key service process.............................................................................................................4 Chapter 2 Analyze KLM through literature 2.1 Understanding Customer Requirements..............................................................................6 2.1.1 Listening to customers through research..........................................................................7 Relevant link: Consumer Fraud.................................................................................................8 2.1.2 Building customer relationships........................................................................................8 Relevant link1:The reinforcing effects of loyalty program partnerships and core service usage9 Relevant link 2: Service management and marketing: how to create value for the customer...10 2.1.3 Service recovery....................
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...and more than 850 other cities, letting you take advantage of one of the world’s leading networks with our SkyTeam partners. II _ Air France-KLM 2010-11 Annual Report airfrance.com making the sky the best place on earth Editorial We can face the challenges with confidence Jean-Cyril Spinetta, Chairman of the Air France-KLM Board of Directors On the North Atlantic, the leading long-haul market globally, Air France-KLM has established a significant lead over the other alliances, and particularly Star Alliance, through the joint-venture that the Group has created with Delta and Alitalia. Our goal is to extend this model to all our SkyTeam partners, and particularly our Chinese partners. Furthermore, we are actively engaged in membership negotiations with other airlines in Brazil, India and elsewhere in Asia. On this basis, SkyTeam stands to benefit from global coverage. After a challenging time in 2009-10, our Group has succeeded in stemming the haemorrhage and returning to profit while also reducing debt. Our recovery has been remarkable. This success is thanks to the outstanding work of the Air France-KLM teams and the resolute commitment of all our employees within a difficult environment. I would like to thank everyone for their efforts. To confirm this recovery, the Air France-KLM group was able to implement the strategy required to win back market share lost during the crisis in both the passenger and cargo businesses. But make no mistake: we are still in...
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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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...Introduction; 6 Methodology; 7 Findings; 8 KLM-Air France 8 Aer Lingus 9 Conclusion 10 Bibliography 11 Terms of Reference; This report has the objective of informing the reader on the approach of two companies to the ongoing financial crisis from 2009 and on. By the means of a comparative analysis, the reader will get a summarized overview of the measures of the two companies and will be able to reflect on them. There are two persons involved in this project; It will be written and submitted by Julian Koster. The final assessment will be done by the lecturer, Ms. Gina Noonan. Who is also responsible for correcting the drafts as well as grading the report in the end. The timeframe of this project is as follows; Date: | Event: | October 25, 2011 | First Draft of Executive Summary submission. | November 8, 2011 | First Draft of Methodology submission. | November 15, 2011 | First Draft of Comparative Analysis and Conclusion. | December 2, 2011 | Final Submission of Entire Project. | The structure of the report is made up of the following points; * Cover Page * Table of Contents * Terms of Reference * Methodology * Executive Summary * Comparative Analysis 1. KLM-Air France 2. Aer Lingus * Conclusion * Bibliography Executive Summary; This report was written to examine the way in which two companies handled the economic crisis of the late 2000s. The companies are; KLM – Air France and Aer Lingus. The research conducted...
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...Case Study What are the main drivers of success in the airline industry? Critically analyze and comment on the evolution of the airline industry? The main drivers of success in the airline industry are dependent on what the customers value and where the organization (in this case the airline company) must excel to outperform their competition. Since the airline industry is very sensitive to changes in the economy, both passenger and freight demand need steady economic growth. Therefore a main success driver is to manage the high fixed costs, which are related to these areas. Also, it is important to have control over the cost item fuel, which is crucial to an airline since it’s also considered to be a fixed cost. It is also mentioned in the case that technological innovation and flexibility were considered to be key success factors for profitability. Another important factor is the relationship between airliners and aircraft providers, since this can ensure the airliners flexibility and renewal, which is of importance to the customers in this highly competitive industry. Airliners should also be considering their occupancy rates, which should be optimized to cover the fixed costs of every flight. To do this, fidelity programs and code sharing can be used as tools for success. The evolution of the airline industry starts with national clusters, and countries and governments have played a big part for the industry. The governments would support the (often state owned)...
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...Delta airline and Air France KLM established a joint venture that includes revenue sharing, cost sharing and intercontinental routes between two airlines. This joint venture was successful in early days and its sales were more than 12 billion Euros in 2011. As author said the purpose of this case is discussion in class room rather than examining its benefit and loss so this case examined the airline industry. Especially this case discussed the joint venture and Alliances that occurred in past between the different airlines. In this case Delta airlines and Air France KLM discussed about its joint venture, policies, procedures and operation. But Air France KLM and Delta airlines faced some issues and conflicts over the time. Detail of case is discussed as follows. This case was written by Pierre Dosage and Ulrich Washer of John Molson Schools of business in Concordia University. Airlines industry was tremendously change in last 24 years and especially during 1990 to 2010 many alliances in airline industry was occurred. A first airline alliance was established in 1930 between pan American Grace and Latin America. That alliance was simple and limited but with the passage of time alliances become complex and diversified and many airlines alliances occurred afterwards. Alliances occurred in different categorize according to the need and relation of airlines with each other's. First alliance category was code sharing agreements whereas airlines allowed each other's passengers on corresponding...
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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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...AirFrance KLM Financial Statement by March 31， 2011 for Financial Accounting and Reporting CPTC 31125 handed in to Prof. Pascale Lapointe edited by Marie DU BOUCHER B00135369 Anna-Christina FREDERSHAUSEN B00405951 Shuangyu SHEN B00336198 Mohamed YADANI B00347217 25.11.2011 * * Contents Contents i Table of Figures i 1 Oversight of the firm and industry 1 2 Oversight of the financial position 2 2.1 Balance Sheet 2 2.2 (Comprehensive) Income Statement 4 2.3 Statement of Changes in Equity 5 3 Oversight of the statement of cash-flows 5 3.1 Cash flow from operating activities 5 3.2 Cash flow from investing activities and the Free cash flow 6 3.3 Cash flow from financing activities 7 4 Selected topics 7 4.1 Segment reporting 7 4.2 Leases 7 4.3 Provisions 7 4.4 Income taxes 8 5 Conclusion 8 Appendix 1: Consolidated Balance Sheet ii Appendix 2: 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...
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...Airlines responsible for air transport * United Aircraft responsible for manufacturing in the East * Boeing Airplane Company responsible for manufacturing in Western countries. United Aircraft and Transport Corporation is a vertically integrated group, present in all sectors of aviation. In 1934, an anti-trust law is to separate aircraft manufacturers companies carrying mail, and forces the company to split into three entities, * United Air Lines in 2011, which is the largest airline in the world * United Aircraft Manufacturing Corporation, which later became the United Technologies Corporation * Boeing Airplane Company, which became in 1941 The Boeing Company. Case example of Air France / KLM In September 2003, it was announced by Air France and KLM that they would merge their ownership and begin synchronizing operations, although they would continue to be supposedly separate carriers. This blend of two of Europe's largest four carriers created the world's largest airline, as considered by...
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...IAG INTERNATIONAL AIRLINES GROUP Corporate finance 2013 ------------------------------------------------- Index 1. Company profile 1. Core activities 2. Competitors 3. External finance 1. Corporate governance 4. Corporate governance 5. Compensation of member of the Board of Directors 6. Investor relation section 2. Stock price data and analysis 7. Daily stock prices 8. Comparison with market and sector indexes 9. Dividends policy 10. Investment magazines reports 11. Five selected new facts 3. Financial information 12. Capital structure 13. Liquidity and solvency analysis 14. Beta coefficient and cost of equity 15. Discounted cash flow analysis and implication of fundings 4. Recommendation ------------------------------------------------- 1. COMPANY PROFILE 1.1 Core activities MISSION: "To be the leading international airlines group in future industry consolidation on a regional and a global scale" International Airlines Group (IAG) is one of the world's largest airline groups: with 377 aircraft and an average of 69 million passengers each year flying to 230 different destinations, IAG is the third- largest based in Europe and the sixth in the world. Formed in January 2011 as a result of the merger between British Airways and Iberia, it is a Spanish registered company whose shares are traded on the London and Spanish Stock...
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...How can Porter's Value Chain model help explain the source(s) of IKEA'S competitive advantage? Ikea is a Swedish global furniture retailer, established in 1943 by Ingvard Kampard. It is well known for it’s wide range of functional, uniquely designed, low-priced home furnishings that has 330 stores across 40 countries. With its annual turnover reaching 140billion USD many are wondering what the stores secret to success is. This report will take a strategic approach into analysing IKEA’s competitive advantage through Porter’s value chain model, which divides the actions of a firm into two categories: support activities that can assist businesses to become successful in the marketplace, in Ikea’s case these are Human Resource Management, firm infrastructure, procurement and technology development. The second category, which this essay will look closely at, are the primary activities such as inbound logistics, operations, and outbound logistics, marketing and sales and service. IKEA’s supply chain management has gone from decentralised to centralised planning of its network of suppliers, distribution centres (DCs), stores and forwarders. This has taken them from a fragmented management to a coordinated, centralised supply chain planning (Jonsson, Rudberg and Holmberg, 2013). With IKEA’s stakeholders demanding to know the origins of the supplier’s ethics towards their workers and the environment, IKEA are recognising that their supply chain must be sustainable, transparent and...
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...strategic success. And according to Skinner (1969), operations management (OM) can contribute to better company performance like reduced cost, increased revenue, etc. As a kind of understanding, whether a company has good operation strategies and management is one important factor that can “make” or “break” a business. Operations strategy (OS) can guide the whole business progress in the long-term. It is concerned with how the market is changing and what the operation has to do to meet current and future challenges (Slack & Lewis 2011, p7). Motivation behind strategic operations is two-fold: superior class of public utility and profitability (Narayanaswami and Rangaraj 2012, p102). One useful tool in formulating OS is OS matrix. It enables company to consider how resources can be effectively used to affect quality, speed, dependability, flexibility and cost, in order to meet market requirements. One good example to explain the importance of OS/OM is Hagen Style. Hagen Style is a successful kitchen equipment company in North America and its success owes to its direct marketing operations, along with its efficient distribution system. To Hagen Style, it is a good start that this company developed the appropriate marketing and distribution strategies which fit the market at that time. These OSs are maintained by effective OM. For example, without strict planning and management , the two distributions could be a mess and unable to realize fast delivery. The information system help...
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...part of its output is sold in the country where it is manufactured. Today, however, the scope of international marketing has broadened and includes many other business activities. The activities of large department store chains include a substantial element of importing. When these stores search for new products abroad, they practice another form of international marketing. A whole range of service industries are involved in international marketing; many large advertising firms, banks, investment bankers, public accounting firms, consulting companies, hotel chains, and airlines now market their services worldwide. International marketing encompasses some activities that only indirectly result in international transactions. Entry Strategies Before a firm considers expansion into international frontiers, it must make three strategic decisions; which Markets to enter, when to enter these Markets and What will be the scale of entry. An international business can create in a market suitability of products for a market. It can also create in a market, a nature of indigenous competition which are not widely available and yet satisfies an unmet need. There is also a greater value translated into the ability to charge higher prices and increase sales volume more rapidly. The timing of entry by a firm into a foreign market becomes very important. Early entrants initiate a first mover advantage over the competition. This creates the ability of the firm to pre-empt rivals and...
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