Air France-KLM to revamp its structure
By: Victoria Moores
Courtesy, Air France-KLM
Air France-KLM chairman and CEO Jean-Cyril Spinetta has warned that the company needs to change its structure to preserve its status as a major world airline.
“Today our industry is dominated by 15-20 major airlines. Air France is a part of this, but if we want to remain in the top 10-15 we need to remain strong and effective,” Spinetta said during the Air France-KLM results conference.
Under the revamp, Air France-KLM’s functions will be centralized on three business areas: group corporate functions, joint business functions and group support functions. This change is aimed at maximizing revenues, minimizing costs, speeding up decision-making and streamlining the organization. “We are not integrating simply for the pleasure of doing so,” Spinetta said.
The restructured Air France-KLM will be led by Spinetta, a CEO committee and a group executive committee. Beneath this there will be a range of centralized corporate functions, including joint passenger commercial functions, cargo, maintenance and group support functions. The two major airlines—Air France and KLM—will sit within this framework and draw off the centralized structure.
Spinetta believes “significant savings” could be made by increasing the level of common IT within the group and he is aiming for an “even more tightly knit” cargo operation.
“Our industry is already dominated by some very large groups and I think this will increase,” Spinetta said, citing the example of American Airlines-US Airways and flagging China as a future consolidation hotspot. “If European and US airlines want to remain present in the global alliances—the global alliances we created—in 15 to 20 years, and if we want to remain as active players not only defending our interests, it is necessary to group together so our voice is heard in global context.”
The new structure has been submitted to the company’s unions and will be rolled out during 2013. “Our goal is very clear,” Spinetta said. “We want to step up our decision-making and step into the competitive arena.”
By: Victoria Moores
Courtesy, Air France-KLM
Air France-KLM chairman and CEO Jean-Cyril Spinetta has warned that the company needs to change its structure to preserve its status as a major world airline.
“Today our industry is dominated by 15-20 major airlines. Air France is a part of this, but if we want to remain in the top 10-15 we need to remain strong and effective,” Spinetta said during the Air France-KLM results conference.
Under the revamp, Air France-KLM’s functions will be centralized on three business areas: group corporate functions, joint business functions and group support functions. This change is aimed at maximizing revenues, minimizing costs, speeding up decision-making and streamlining the organization. “We are not integrating simply for the pleasure of doing so,” Spinetta said.
The restructured Air France-KLM will be led by Spinetta, a CEO committee and a group executive committee. Beneath this there will be a range of centralized corporate functions, including joint passenger commercial functions, cargo, maintenance and group support functions. The two major airlines—Air France and KLM—will sit within this framework and draw off the centralized structure.
Spinetta believes “significant savings” could be made by increasing the level of common IT within the group and he is aiming for an “even more tightly knit” cargo operation.
“Our industry is already dominated by some very large groups and I think this will increase,” Spinetta said, citing the example of American Airlines-US Airways and flagging China as a future consolidation hotspot. “If European and US airlines want to remain present in the global alliances—the global alliances we created—in 15 to 20 years, and if we want to remain as active players not only defending our interests, it is necessary to group together so our voice is heard in global context.”
The new structure has been submitted to the company’s unions and will be rolled out during 2013. “Our goal is very clear,” Spinetta said. “We want to step up our decision-making and step into the competitive arena.”
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