Born on August 30, 1933 by the consolidation of major French airlines ‘Societe Generale Air Transport,' Air Union, the International Company for Air Navigation, Air East and ‘Compagnie Generale Aeropostale', Air France formed the largest French airline company.
In January 2000, the Company took direct control of UTA, a private French company founded in 1062, and, indirectly, Air Inter, which is 35.80% owned by UTA. This absorption made the Group Air France the largest European group, and one of the world leaders.
On January 12, Air France announces its official entry into the capital of AWU, as it becomes the majority shareholder, thus, taking indirectly, the control of Air Inter. The final merger of Air France and UTA brands, occurred in autumn 2002. Groupe Air France SA, owned 100% under the state umbrella Air France and Air Inter.
On 01/01/06, Air Inter took the name ‘Compagnie Air France Europe' and operated its business under the brand" Air Inter Europe." The merger of Air France and Air France Europe was done on 09.12.2007, with effect from 1.4.2007.
On 02/22/2009, Air France was conducting the first step in opening its capital paving the way for privatization. The results of the 2007-08 financial year (ended March 31, 2008) confirm the Group's recovery, since the consolidated net profit amounts to 1.87 billion Euros, against a loss of 147 million in the previous year. It corresponds to 3.1% of Group revenues, which amounted to 60.7 billion Euros, up 9.2% compared to the previous year. This growth was driven by higher passenger traffic activities (+ 5.1%) and freight traffic (+ 4.8%) and an increase in unit revenue of approximately 5.7%.
The aviation sector is growing by nearly of 10%, with a growth of 9.2% for passenger transport on regular flights, and 12.3% for freight transport. In 2007-08, Air France was provided the relief necessary for its future development. This growth, coupled with the continuing effects of cost control is a good guarantee of sustainable return to profitability.
Air France-KLM is a holding company for Air France and KLM Royal Dutch Airlines (KLM). The group is organized around a clear structure: a holding company for two airline companies. This organization "a group, two companies", aims to create synergies with the strengths of both companies.
Today, Air France-KLM is the world's leading airline group in terms of turnover and the European leader in terms of market share.In 2005-06, the company included 102,000 employees and coordinated 1,800 daily flights from 185 different destinations.3
Air France-KLM provides scheduled and charter flights for passengers and freight as well as aircraft maintenance and repair services. It also proposes air commissionership, freight forwarding activities and ticket reservation systems.
Air France is headquartered in Paris-Charles de Gaulle. The airport provides the link between the medium-haul and long-haul networks of Air France and its partners. This hub also has a high European potential for future expansion. KLM has Amsterdam Airport Schiphol as its home base.
Tags: Air France-KLM, Paris-Charles de Gaulle, Air France: Marketing and communication report
[...] It is possible to attribute the AIDA model to Air France regarding its customer readiness stage AIDA model/the strong theory attribute to Air France communication strategy Cognitiv Awareness e Catching the target market's attention and generating straight forward awareness of the product. Air France uses media advertising, sponsoring and hospitality events to get the brand known and understood as being something different and special, not just an airline company. Interest The affective stage involves creating or changing an attitude. Giving the Affectiv consumer sufficient information (whether is factual or e image based) to pass judgment on the product and to develop positive feelings towards it. [...]
[...] High pricing policy: promotions are insignificant but it fits with the strategy of Air France-KLM based on a qualitative service and not on a cheap one Promotions on European destinations: generally European capitals. Promotion in business class on long-haul destination must be booked 42 days before: too long and not flexible “Flying Blue” promotion: loyalty program E.g miles = return ticket in First Class from France to South Pacific “Flying Blue” card: adapted to professionals because they travel a lot and they easily accumulate miles on their card and obviously they are customers for business class and First Class. [...]
[...] In addition, it is a finite and centralized strategy to attract and retain customers and of course build and sustain long term buyer-seller relationships Internal information from the advertising agency Euro RSCG www.oboulo.co m Marketing communication Develop an ongoing direct relationship between Air France and its customers: This is a key element that perfectly fits the main objectives of Customer Relation Management (CRM) developed by Air France. It also implies continuity and seems to contradict the impersonal approach traditionally offered by mass media advertising. [...]
[...] However, their profitability has deteriorated because of new entrants, which has increased competition inside this market and also because of the market reaction from full service carriers which have adapted by offering a two tier system of lower fares1, thereby further increasing their passenger load ratios Analysis of the European air transport industry 2003 (Final report 2005) 2 Analysis of the European air transport industry 2003 (Final report 2005) Marketing communication - Regional airlines: (Lufthansa CityLine, Swiss Regional, Air Nostrum etc) There are many regional scheduled airlines operating in Europe. [...]
[...] ‘Passenger and Freight Traffic Growth Continues on Pace with Forecast - Promising Start to 2006' (April 2006) http://www.iata.org/pressroom/pr/2006-04-03-1.htm Marketing communication With the expansion of the European Union from 15 to 25 member states in May 2004 came the opening of Europe's airline industry, making it the largest liberalized air transport market in the world by population size14. This opportunity could be very interesting for Air France-KLM due not only to a growing number of clients but also the opportunity to increase the number of flights to attractive destinations in terms of business activities or leisure. [...]
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