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Air France – KLM provides update on Transform 2015 progress

by BA Staff

European airline group Air France – KLM has provided an update on its Transform 2015 plan, which aims to transform the airline and restore profitability by 2015 by slashing unit costs excluding fuel by 10% and shedding €2 billion worth of debt. The following details were provided by Air France – KLM in a release:

  • Tranform 2015 measures drove an improvement of €100 million in first half operating results
  • Air France has judged that it has 2,800 “excess staff” who will be progressively eliminated over the course of 2013-14 via voluntary departure plans
  • Wage moderation will continue in 2014
  • Point to point operations at Paris Orly will be handed over to low cost carrier (LCC) wing Transavia France
    • Five new aircraft will be based at Orly by Transavia France from 2014 onwards, and Air France’s full service point-to-point network will be adjusted downwards accordingly
    • Seasonal adjustment of schedules and capacity will be used more heavily
  • More outsourcing will occur at French stations and customer service processes will be reorganized
  • Air France will retire all of its dedicated Boeing 747 freighters by 2015, leaving two Boeing 777Fs as the only dedicated cargo aircraft in its fleet
  • Cargo operations at Paris Orly will be outsourced
  • Growth in the route network will be focused on long haul only
    • Fleet wise, the seven 747-400s will leave the fleet by 2015, to be replaced by four Boeing 777-300ERs and 3 Airbus A380-800s, though the final two A380s have been deferred to 2016 or beyond. The first 787s will arrive at KLM in 2017, followed by Air France’s first A350s in 2018
  • A new “Future hub” plan is being set up at Paris Charles de Gaulle, which will see the carrier invest in new technology and facilities so as to give passengers flying through Charles de Gaulle into a smoother connecting experience

About Vinay Bhaskara

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