Since the merger between Air France and KLM, Air France
strengthened its position on the world market-place, by increasing its
activities and results. Then, Air France tempts to develop loyalty among its
customers thanks to the extension of its network of Hubs and to the dynamism of
the SkyTeam alliance. In 2006, for the second consecutive year, SkyTeam was
again elected " better alliance of the year " by the readers of the American
monthly magazine Global Traveller Magazine. This allows Air France to have a
well-balanced network. In spite of the promotion of Air France KLM, it is
noticed that the KLM debt has still raised and short and medium-haul flights
are not profitable.
Air France considers remedied in these weaknesses by
the implementation of Low cost and the project " vision 2010 ". The project
vision 2010 articulates around four big challenges which the company has to
raise:
- Achieve best in class service for our customers
-
Strengthen our competitiveness through change management
- Set the example
in corporate social responsibility and sustainable development
- Together
with KLM successfully develop the Group of tomorrow
At the level of the opportunities of the market, Air
France cannot neglected the strong growth of the market and the evolution of
low cost. Air France, since the end of year 2006 succumbs to Low cost. The
airline company goes displayed the wings of its new strategy of flights cheap
by 2/3 the years. She will be proposed via a new activity and a web site
declined from a subsidiary of her Dutch partner KLM. KLM Air France has to
seize the opportunities on the differentiation by the security and on the
environment.
KLM Air France is rapidly expanding and wants to become
leader in all its domains, in spite of its strong evolution, the group has to
pay attention on the durable increase of the oil, in possible economic
situation, in the catrastrophe internation and especially in the strong
competition of low cost, HST and US company.
II) Successful merger through network management
New Business Model (course network strategy)
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