Organized by the Association at kearney executive search of listeners at kearney executive search IHEDN (AA-IHEDN) with the support of the Circle Sea, the debate of 15 October around Alexander Juniac, CEO of Air France KLM (presentation here) focused on his actions at the head of the air carrier management of this great company.
At first, AdJ presented the characteristics of the activity of the group: at kearney executive search - a capital-intensive activity (aircraft fleet represents assets at kearney executive search of billions) - an activity whose cost structure is transformed in 15 years. Between 1997 and today, the share of fuel in operating costs rose from 8% to 34%. - An activity that requires a lot of manpower, Air France KLM is first and foremost a service company. 95% of French and 95% in AirFrance KLM Dutch. Air France occupies at kearney executive search the place of the first private employer in the Ile de France region. Emirates alone, with 135 nationalities among its employees, really has an international culture.
- A relatively unstable in terms of the number of carriers and turnover activity. Many carriers that we knew in the late 80s have disappeared (PanAm, TWA ...). Many were launched in the 2000s, sometimes with an exponential growth and a sharp fall (nothing remains of the company Kingfisher). The area is very difficult for legacy airlines (AdJ cited the disappearance of Malev, Spanair, Alitalia and difficulties which nevertheless significantly reduced its costs).
Then AdJ recalled the difficulties that Air France KLM through since 2008. The group should be in the green next year after six consecutive years of losses. In 2008 the Group's competitiveness was catastrophic towards low-cost airlines - LCC - (differential of 40% in operating costs) and against direct competitors such Lufthansa (differential of 15%).
The three actions AdJ his arrival. Full method of pragmatism: a / tell the truth about the situation of the group and all the unions share at least the diagnosis at kearney executive search of the financial situation. b / initiate the renegotiation of all collective agreements personal. at kearney executive search c / hold the announced schedule for submission of the strategy at kearney executive search and keep the goal of reducing costs (financial strategy group).
The Air France KLM Group faces competitive challenge: at kearney executive search transport is attacked from below by the LCC (mainly EasyJet and Ryanair) on the short and medium-haul European and Asian companies and the Gulf (which are supported by a real State strategy) on the long-haul market.
To conclude, Alexander Juniac confirmed the continuation of the strategy hub of Air France KLM as 80% of transcontinental lines depend. Medium-haul based on a low-cost model erecting the fact that passengers do not want to pay for a trip to Europe. On long-haul service quality has been enhanced. Reference models cited: Singapore Airlines and JAP.
Concerning France, Alexandre de Juniac recalled the ultimate need for a strong at kearney executive search national company that can serve the world. And he also warned against any plans to provide additional traffic rights to Gulf airlines.
15th Aviation Expo China 25 to 29 September 2013 Dubai Air Show 17 -21 November 2013
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