AF™/KL™ | Air France-KLM Group: Air France/KLM

[hkskyline]

Air France delays Chinese joint venture: reports
10 February 2009
Agence France Presse

Europe's biggest airline Air France-KLM is delaying a deal on cargo flights with China Southern and will announce big cutbacks because of the economic crisis, media reports said on Tuesday.

French business daily La Tribune said that the joint venture with the Chinese airline was to have been set up at the beginning of 2009 "but the objective now is to launch this company at the end of the year, in the autumn."

The deal has been delayed because the companies do not want to "rush" at a time when cargo traffic is going down because of the economic downturn and because of bureaucracy in China, La Tribune reported without citing its sources.

Contacted by AFP, Air France-KLM declined to comment on the report.

The Les Echos newspaper also reported that the French-Dutch airline was preparing to announce cutbacks following its operating loss of 200 million euros (257 million dollars) in the last quarter of 2008 amid a global slump in airline traffic.

Cuts could include a hiring freeze and not replacing employees who leave.

Air France-KLM said on Monday that its cargo traffic had plunged 23.3 percent in January and passenger travel fell by 1.9 percent in the same month, with a particularly sharp decline in business travel in Europe and Asia.

[Alvar Lavague]

Concerning the new livery, contrary to what Aerocontact.com reported in January, the modifications are minor : new logo, sea horses (the historical logo) on the engines and some cosmetic changes on the barcode : 3 blue stripes instead of 4, a slightly larger red stripe and the lower part of the stripes are curved to match the new logo.

[pijanec]

New livery is great.

[Alvar Lavague]

Bloomberg, February 13, 2008 :

Air France to Cut 2,000 Jobs After EU505 Million Loss

By Steve Rothwell

Feb. 13 (Bloomberg) -- Air France-KLM Group, Europe’s biggest airline, said it will eliminate as many as 2,000 jobs after lower ticket revenues and dwindling cargo volumes pushed it to a third-quarter loss.

The cuts at the Air France unit will be achieved by scrapping posts when people leave and no one will be fired, spokesman Nicolas Petteau said today. The company had a 505 million-euro ($653 million) net loss in the three months ended Dec. 31 versus a year-earlier profit of 139 million euros.

Air France joins British Airways Plc, Ryanair Holdings Plc and Virgin Atlantic Airways Ltd. in slashing jobs this week as the industry is buffeted by crumbling demand for air travel. The Paris-based company will also cut 1.2 billion euros from capital spending and reduce capacity by 2 percent as it targets a positive operating profit in fiscal 2009.

“I’m encouraged by the moves they’re making to protect their financial position,” said NCB analyst Neil Glynn, who recommends buying Air France stock. “Airlines globally, the flag carriers in particular, are firefighting to try and weather the current storm.”

Air France rose as much as 7.3 percent to 8.30 euros and was trading at 8.15 euros as of 10:35 a.m. in Paris. The stock has declined 11 percent this year.

“Activity in the third quarter reflected the increasing severity of the economic downturn,” Air France said in a statement. “We will continue to assess all our costs in order to achieve additional savings wherever possible.”

Cargo Collapse

The three-month loss came after cargo traffic declined almost 13 percent and tumbling oil prices compelled the company to reduce fuel surcharges to passengers, hurting ticket revenue.

While passenger traffic increased 3.4 percent in the quarter, it slipped 1.9 percent in January, when the drop in cargo traffic accelerated to 23 percent.

Air France said contracts to fix the cost of fuel purchases had a “negative impact” following the 76 percent drop in crude since July and that it would unwind those positions. The carrier will subsequently be hedged on 43 percent of its energy needs for the 12 months through March 2010, a move that should cut the bill by 300 million euros to 5.5 billion euros, according to NCB’s Glynn.

Airlines globally are shedding jobs and routes to help combat losses that may reach $2.5 billion this year as traffic falls 3 percent, according to the International Air Transport Association.

Virgin, Ryanair Cuts

Richard Branson’s Crawley, England-based Virgin Atlantic said yesterday it may eliminate 600 posts across its business in order to “stay healthy” until economies revive. Ryanair, Europe’s biggest discount airline, said it will cut 200 jobs at its base in Dublin.

British Airways, Europe’s third-largest carrier, has cut more than 400 managers through voluntary severance and said Feb. 6 it will meet with unions to agree further reductions. SAS Group, the owner of Scandinavian Airlines, is making the deepest cuts, eliminating 3,000 jobs as it culls capacity by 20 percent and abandons ambitions to operate as a global carrier after more than a year of losses.

Deutsche Lufthansa AG, Europe’s second-biggest airline, said Feb. 3 that it would “react with necessary measures,” to maintain profit and that its business is “afflicted by higher than usual risks.”

Air France reported a 194 million-euro operating loss for the quarter after disclosing on Jan. 20 that the deficit for the period would be around 200 million euros. Analysts had predicted a loss of 217 million euros.

http://www.bloomberg.com/apps/news?p...15Y&refer=home

[hkskyline]

Air France-KLM delays new plane deliveries

PARIS, Feb 16 (Reuters) - Air France-KLM said on Monday it would delay taking delivery of several aircraft by two to three years as it seeks to rein in costs in the face of the global economic downturn.

A spokesman for Europe's largest airline said the delay would involve about five aircraft, including some Boeing 777-300 planes, some Boeing 777 cargo planes, and some Airbus planes.

He added that delivery of an A380 superjumbo plane was still expected for the end of the year.

The airline was not cancelling any plane orders.

Earlier French paper Les Echos reported that the airline could put off delivery of three Boeing 777-300 aircraft, one of three Boeing 777 cargo planes ordered and one Airbus A380 superjumbo.

Air France-KLM swung to an expected third-quarter operating loss last week and abandoned some of its costly fuel price hedges.

It also announced 1.2 billion euros of capital spending cuts, half in the coming year, and said it would cut summer seat capacity by 2 percent, in a move adopted by many airlines to help shore up profitability.

By 0930 GMT, Air France-KLM shares were up 1.18 percent at 8.07 euros.

[Alvar Lavague]

Air France, February 26, 2009 :

Air France Cargo takes delivery of its first 777

On 21 February, Air France Cargo took delivery of its first Boeing 777 freighter. The aircraft, registration F GUOC, landed at Paris-Charles de Gaulle after its ferry flight from Seattle.

Florence Parly, Executive Vice President Air France Cargo, was present on the tarmac to take delivery of this new aircraft, “which we are the first to operate” and which will enable Air France to “generate close to 20% of fuel savings per revenue tonne-km and to rationalize crew costs by standardizing aircraft”.
[...]

Article and video here.

[Alvar Lavague]

Reuters, March 3, 2009 :

Air France says to delay two A380 plane deliveries

PARIS, March 3 (Reuters) - Air France KLM (AIRF.PA) said on Tuesday it would defer taking delivery of its sixth and seventh Airbus (EAD.PA) A380 planes, out of its order for 12 of the giant aircraft.

Chief executive Pierre-Henri Gourgeon had told the Reuters Travel and Lesure summit on Monday the group could defer some A380s after the first six, to save cash on downpayments.

"It's mainly from the six or seventh aircraft that we may move or adjust our schedule, which will create some saving on the down payment this year and the year after," said Gourgeon, who took over as CEO in January. [ID:nN02425406]

In an statement on Tuesday, Air France specified that only the sixth and seventh deliveries of the dozen A380s on order would be postponed. (Reporting by Marcel Michelson; Editing by Dan Lalor)

http://www.reuters.com/article/rbssI...25453120090303

[Alvar Lavague]

Tradingmarkets.com, February 25, 2009 :

Air France-KLM still interested in Scandinavian airline SAS

European airline group Air France-KLM (Euronext: 3112) (NASDAQ-OTCBB: AFLYY) is still interested in possibly acquiring Scandinavian carrier SAS Group (Stockholm: SAS), according to a report in French business newspaper La Tribune on Wednesday (25 February).

However, the ongoing restructuring of SAS has made the Franco-Dutch airline rethink its approach to any deal and the company is now looking elsewhere for acquisitions, it added.

Air France-KLM is understood to be mulling a possible EUR200m bid for Czech flag carrier Czech Airlines, which is to be privatised by the end of September, La Tribune said.

Czech Airlines is controlled by the state, which holds a 92% stake in the company. Struggling SAS has announced it will implement drastic cost cutting measures to improve performance

http://www.tradingmarkets.com/.site/...0News/2194180/

[Alvar Lavague]

Reuters, March 3, 2009 :

Air France-KLM eyes CSA, crisis ongoing

NEW YORK (Reuters) - Air France-KLM (AIRF.PA) will launch a tentative bid for Czech Airlines (CSA) within weeks as European carriers regroup in the face of a downturn that so far shows no signs of easing, its chief executive said on Monday.

The move comes after it won a 25 percent stake in Italian carrier Alitalia and weeks before the Franco-Dutch firm starts up a key transatlantic joint venture with Delta (DAL.N), fed by traffic scooped up from its own network and partner airlines.

"We understand the Czech government is interested in finding a buyer for a significant part of (CSA). We don't have a lot of information but we are of course very attentive because CSA is a Skyteam partner," Air France-KLM CEO Pierre-Henri Gourgeon said.

Asked whether Air France-KLM would submit an official expression of interest for the Czech privatization by a March 23 deadline, he said, "We will express something, yes."

Gourgeon was speaking at the Reuters Travel and Leisure Summit in New York in his first overseas interview since he became CEO of Europe's largest airline in January.

Air France-KLM had previously declined to say whether it might bid for CSA, saying only that it would study the dossier.

Analysts expect the airline, which broke-even in the past two years after a history of losses, to fetch some $200 million.

Hungry to boost the flow of passengers into more lucrative long-haul flights, Europe's "Big Three" -- Air France-KLM, British Airways (BAY.L) and Lufthansa (LHAG.DE) -- have been jostling for control of smaller former state carriers crippled by recession.

[...]

http://www.reuters.com/article/Trave...52169720090303

[eurekak750i]

http://www.reuters.com/article/rbssI...11771720090311

PARIS, March 11 (Reuters) - Franco-Dutch airline group Air France-KLM (AIRF.PA) plans to order Airbus (EAD.PA) or Boeing (BA.N) long-haul aircraft worth over $20 billion at list prices, French newspaper La Tribune reported.

The carrier will order around 100 Airbus A350s or Boeing 787 Dreamliners as early as the end of 2009,

[Dan]

I hope they go for A350s.

[eurekak750i]

The FINANCIAL -- Air France is continuing to innovate by introducing a new, private cabin on its long-haul flights, starting in autumn 2009, situated between the Business and Economy cabins, called Premium Voyageur.

http://finchannel.com/index.php?opti...32358&Itemid=4

[hkskyline]

Air France-KLM shows interest in Czech Airlines
23 March 2009
Agence France Presse

Air France-KLM said on Monday it was interested in the possible acquisition of Czech Airlines, currently in the process of being privatised.

"Air France-KLM in a letter will today make a non-binding expression of interest in order to have access to detailed documentation on the company," the Franco-Dutch carrier said in a statement.

"Firm offers are not expected before June, after an in-depth analysis of Czech Airlines by the candidates."

Early in February, the Czech Republic issued a call for bids for the privatisation of the government's 91.51-percent stake in the carrier.

Czech Airlines, or CSA, is already a member the Sky Team marketing alliance, which includes Air France and the Aeroflot of Russia. Aeroflot has also expressed interest in CSA.

[Shezan]

really like the new AF livery, and the new class idea

[ddes]

Does anyone have any links to the new AF ad? I'm not talking about the one introducing the new livery though, it's something else.

It's been playing in Singapore quite recently with the Voilah! French Festival ads.

[Jan Del Castillo]

The new class is very comfortable. Regards from Colombia.

[Alvar Lavague]

Asiatraveltips.com, March 26, 2009 :

Air France - KLM to Test Emission-Free Airport Vehicles

Air France and KLM will be among the first airlines in the world to test AirPods. In May 2009, a pilot project kicks off using seven of these zero-emission, compressed-air-driven vehicles.

Air France and KLM will be using these zero-emission vehicles over a six-month period to transport passengers and light cargo at Paris Charles de Gaulle and Amsterdam Schiphol (East). Diesel vehicles are currently still in use at these airports.

The AirPod exemplifies the series of sustainable innovations admired by Minister Camiel Eurlings, Minister of Transport and Public Works for the Dutch government when he visited KLM on Wednesday. A recent agreement closed between the sector and government focuses on promoting sustainable innovation. KLM intends to turn these agreements into concrete achievements.

“We don’t stop at pretty words,” said KLM President & CEO Peter Hartman. “Despite facing strong economic headwind, KLM intends to continue to lead the world in the field of innovation and sustainability.”

The minister also admired several other innovations including:

- Aircraft stairs featuring solar panels. These stairs are used handling aircraft at the new B Pier (South), for example, where there are no gates.

- Reusing old aircraft components, as initiated by KLM last year. Scraps are used to make new engine components, for example.

- Research into energy recovery from company waste. This process involves converting catering waste into heat and electricity using special technology, releasing no CO2. What’s more, the waste no longer has to be transported elsewhere, further reducing CO2 emissions and saving transports costs.

- The development of alternative fuels, such as kerosene made from algae. Together with government, KLM hopes to significantly stimulate this development.

- The use of sustainable materials and achieving weight savings on board, such as the use of lighter trolleys, saving almost ten kilograms a trolley. Depending on the destination, this involves around eight to eleven trolleys a flight. Other examples include lighter fleece blankets, coffee cups made of recyclable raw materials, and serving sustainable fish and rainforest coffee.

http://www.asiatraveltips.com/news09...ranceKLM.shtml

[hkskyline]

Air France warning highlights global trade fears

PARIS, March 27 (Reuters) - Shares in Europe's largest airline fell sharply on Friday after Air France-KLM ditched any hopes of making a full-year profit and warned of "unprecedented difficulty" as the global crisis strangles trade.

The group said late on Thursday it expected an operating loss of 200 million euros ($268.1 million) in its financial year to March 31, compared with a profit of over 100 million expected by the market, sending its shares down as much as 7.3 percent.

It predicted a further operating loss in 2009/10.

The warning followed on the heels of weak traffic figures from international airlines body IATA on Thursday and fuelled evidence that economic woes have continued unabated into March, as G20 leaders prepare moves to unfreeze global trade next week.

It also contrasted with the same airline's predictions of a profit just six weeks ago, proving how many are struggling to make forecasts as their visibility over forward bookings falls.

Although most airlines are suffering, Air France-KLM is typical of network carriers taking the most pain because they depend on commerce and industry for traffic as much as tourism, the stamping ground of low-cost rivals.

"The downturn is global and the downturn is most exposed to falls in cargo and premium (business and first class) traffic," said aviation analyst Stephen Furlong at Dublin brokerage Davy.

The result of a Franco-Dutch merger in 2004, Air France-KLM says it is picking up market share thanks to a powerful twin hub at Paris and Amsterdam. But it has also been hit by outdated fuel price hedges taken out when oil prices were high.

IATA had said on Thursday passenger traffic fell 10 percent in February and international air cargo traffic fell 22.1 percent, echoing two previous months of bad data [ID:nLQ937429]

And Air France-KLM said the first weeks of March, usually one of the busier months, brought no change in trends.

It highlighted a "significant" drop in unit revenues, "notably as a result of the decline in business travel and international trade".

LOW-COST ADVANTAGE

At mid-session Air France-KLM shares were down 6 percent at 6.681 euros in a slightly negative market, leading the DJStoxx European travel and leisure sector index <.SXTP> lower.

Rival British Airways , which although heavily exposed to plunging transatlantic business travel is seen as less vulnerable than Air France-KLM's globally balanced network to trends in cargo, saw its shares down just 0.4 percent.

Europe's leading low-cost airlines Ryanair and EasyJet managed increases of about 1 percent.

Traditional carriers with higher fixed costs are more prone to see their core profitability kicked lower when revenues fall -- a risk-inducing financial effect known as operating leverage.

And while many people remain reluctant to sacrifice a family holiday, industrial warehouses are seen at a near standstill.

"Low-cost airlines will prove to be more defensive because they are not exposed to premium travel or cargo," said Exane BNP Paribas airlines analyst Geoff Van Klaveren in London.

Economists say a shortage of trade financing has contributed to the sharp drop in global trade which is penalising airlines and shippers. Almost half of international freight goes by air.

Britain said on Thursday it would ask G20 leaders to back a $100 billion expansion of trade finance to reverse a fall in exports at a summit it is hosting next week.

Airlines have cut tens of thousands of jobs and over 40 have been grounded in the past 18 months, crippled first by oil, then by a slump in passenger demand and now a collapse in cargo.

The downturn drew a fresh warning overnight that job pressures could feed through to aerospace manufacturers.

The head of United Technologies Corp jet engine unit Pratt & Whitney told Reuters in an interview it expected to make "significant" additional layoffs this year.

Meanwhile Brazilian jetmaker Embraer posted a 44 percent drop in fourth-quarter profits on Friday on derivative losses and slower sales. ($1=.7460 euros)

[Henk]

The 4th Boeing 777-300ER from KLM, arriving in August '09 don't get the normal KLM blue color. This aircraft will be painted in de new Sky team alliance painting.

[Alvar Lavague]

Interesting. I found a pic of Delta's Skyteam livery: