Air France-KLM

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Air France-KLM S.A.

Type	Public (Euronext Paris: AF, NYSE: AKH)
Founded	2004 (by merger of Air France, founded in 1933 and KLM founded in 1919)
Headquarters	HQ in Roissy-Charles de Gaulle Airport, Roissy, France
Key people	Jean-Cyril Spinetta, Chairman and CEO Leo van Wijk, Vice-Chairman Philippe Calavia, Vice President Finance Pierre-Henri Gourgeon, Deputy CEO
Industry	Airline Industry
Products	Passenger flights (Air France, KLM, Brit Air, Transavia.com, etc.) Cargo activity (European Cargo House) Aircraft maintenance Catering (Servair, etc.)
Revenue	€20.876 billion (year ending 31 December 2005)
Employees	102,077 (as of 31 March 2005)
Website	www.airfranceklm-finance.com

Air France-KLM (Euronext Paris: AF, NYSE: AKH) is an airline company incorporated under French law with its headquarters at Roissy-Charles de Gaulle Airport near Paris. It is the largest airline company in the world in terms of total operating revenues, and the third largest in the world (the largest in Europe) in terms of passenger-kilometres. Air France-KLM was created by the mutually-agreed merger between Air France and Netherlands-based KLM on May 5, 2004. Its CEO is Jean-Cyril Spinetta, the former CEO of Air France.

Private shareholders own 81.4 percent of the company (37 percent owned by former Air France shareholders and 21 percent owned by former KLM shareholders), while the French government owns the remaining 18.6 percent. As a result of the deal, the French government's share of Air France had been reduced from 54.4 percent (of the former Air France) to 44 percent (of the current Air France-KLM). Its share was subsequently reduced again to 25 percent, and later to 18.6 percent. The merger has thus resulted, in effect, to the privatisation of Air France.

Both Air France and KLM continue to operate flights under their distinct brand names as subsidiaries of Air France-KLM. This situation may be subject to change in the future.

Air France Airbus A320

In the fiscal year ending March 31, 2005, the total operating revenues of Air France-KLM amounted to 19.08 billion euros (US$23.98 billion), with a net profit of 351 million euros (US$441 million), a net profit increase of 20.2 percent compared to the previous year.[1] Air France-KLM is one of the most profitable companies in Europe, in sharp contrast with American airline companies which are still experiencing great difficulties in the wake of the September 11, 2001 terrorist attacks. For comparisons, American Airlines, the second largest airline in the world in terms of operating revenues, had total operating revenues of US$18.64 billion in 2004, with a net loss of US$761 million.[2]

As of March 2005, Air France-KLM was operating 554 aircraft. At the time of the merger in May 2004, Air France and KLM combined offered flights to 225 destinations in the world. In the year ending March 21, 2003, the two companies combined transported 66.3 million passengers. Air France-KLM is member of the Skyteam airline alliance. They also offer a Frequent flyer program: Flying Blue.

On October 2005, Air France Cargo and KLM Cargo, the two freight subsidiaries of the group, announced a merge of their commercial activities. The Joint Cargo Management Team now operates the organisation worldwide from the Netherlands.

Air France-KLM operations rely on two major airline hubs: Charles de Gaulle International Airport (Roissy-Charles de Gaulle) near Paris and Schiphol Airport near Amsterdam.

Air France-KLM also holds a 2-percent stake in the Italian flag carrier Alitalia (November 2005). The Italian Government reduced its holding in the struggling airline from 62 percent to 49 percent after a share issue which effectively meant it had surrendered control.

1 Fleet
2 Subsidiaries
3 External links
4 References

^{[citation needed]}

Type												TOTAL

		Inventory	Ordered	Inventory	Ordered	Inventory	Ordered	Inventory	Ordered	Inventory	Ordered
Single-aisle
	A318	13										13
	A319	46										46
	A320	67										67
	A321	13										13
	RJ85										18
	146-200									17		17
	146-300									2		2
	737-300			14								13
	737-400			13								13
	737-500	10										10
	737-700			1		10						10
	737-800			16	9	19	1		4^[1]			35
	737-900			5								5
	EMB 120	7										7
	ERJ 135	9										9
	ERJ 145	28										28
	ERJ 190		6
	F70	5		21								26
	F100	10		20								30
	F50			16								14
	Saab 2000	4										4
Twin-aisle
	A330-200	16		8	2							21
	A340-300	20										20
	767-300ER											0
	777-200ER	25		14	1							40
	777-300ER	16			4							16
	MD-11			10								10
VLA
	747-300	2										2
	747-400	21		25								46
	A380-800		10									0
Cargo
	747-200F/ -300F/	14										14
	747-400ERF			3	1							3
	777 Freighter		5
TOTAL
		330	21	162	55	29	1		4	19	18	540

The firm also owns a small low-cost carrier airline, transavia.com, which operates out of Amsterdam, Rotterdam, and Eindhoven, and which will operate out of Paris-Orly in the future ^[1]. In partnership with Dutch affiliate, Transavia, Air France is to launch a new charter/low-cost subsidiary to be based at Paris - Orly Airport and to begin operations in spring 2007 with leisure route services in the Mediterranean and North Africa. It is rumoured to be named Air France Soleil and will operate Boeing 737 aircraft to be transferred from Transavia's fleet as part of its equity investment. Transavia is understood to have a 40% stake, with Air France holding the rest ^[2]. Air France-KLM also owns 26% of Kenya Airways, acquired by KLM prior to the merger, as well as 50% of Martinair.