Preview

Merge Air France - KLM

Satisfactory Essays
Open Document
Open Document
521 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Merge Air France - KLM
INTRODUCTION AIR FRANCE

KLM Royal Dutch Airline

French Company

Dutch company

Founded in 1933

Founded in 1919

CEO: Frédéric Gagey

CEO: Camiel Eurlings

Hub: Roissy Charles de Gaulle

Hub: Schiphol

Main acEvies: passenger, cargo, maintenance

Main acEviEes : passenger and cargo

Fleet size : 251

Fleet size : 118

DesEnaEons : 199

DesEnaEons : 136

Headquarters : Paris Charles de Gaulle Airport, Headquarters : Amstelveen, Netherlands

What was the moEvaEon?

• Create synergies : processes opEmizaEon and management

• Strengthen its posiEon on the global scene and become the Skyteam leader

• Take control of Amsterdam Airport

KLM’s aZracEveness : a strong background in business alliances

• Create synergies : IT, supply and commercial distribuEon

• Strengthen its posiEon on the European scene

• Previous aZempts of mergers with Lu[hansa and BriEsh Airways didn’t work out

• Air France’ aZracEveness : a progressive absorpEon

What was the common moEvaEons?

• Cost savings & economy of scale • beZer redeployment of Passengers and Cargo acEviEes • widened offer in maintenance acEviEes • Reduce insurance

You May Also Find These Documents Helpful

  • Better Essays

    American Airlines has been suffering for many years. The company has suffered more losses than profits. Jobs have been cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.…

    • 1366 Words
    • 4 Pages
    Better Essays
  • Good Essays

    At&T, T-Mobile Merger

    • 1917 Words
    • 8 Pages

    On March 20, 2011, AT&T announced that it would purchase T-Mobile from Deutsche Telekom for a staggering $39 billion dollars. The now second largest wireless distributor AT&T would become the largest over its competitor Verizon wireless by acquiring the 30.8 million subscribers that T-Mobile currently holds. This would not be the first time a merger took place between Wireless providers, in 2004 Sprint and Nextel merged and in 2009 Alltel merged with Verizon. So it came as no surprise when the two carriers with compatible networks (GSM) announced a potential merger.…

    • 1917 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Merger of Verizon & Alltel

    • 2915 Words
    • 12 Pages

    Verizon Communications, Inc. was formed on June 30, 2000 with the merger of Bell Atlantic Corporation and GTE Corporation, in New York City and incorporated in Delaware. On July 3, 2000 Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol. On March 10, 2010 they began trading on the National Association of Securities Dealers Automated Quotations (NASDAQ). The mergers that formed Verizon had roots going back to the beginning of the telephone business in the late nineteenth century.…

    • 2915 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Southwest Airlines Merger

    • 1237 Words
    • 5 Pages

    In order to make up for increasing expenses Southwest needs to expand. My recommended strategy for Southwest to pursue, is to merge with Air-Tran and expand into areas where Air-Tran has a heavy presence and Southwest has none. With Southwest having a weak presence in the southeastern U.S., a key area to expand would be Atlanta’s Hartsfield-Jackson International, which is the busiest airport in the U.S. There is obviously a need for the low air-fare company at this site. Southwest’s unique approach of no extra charge for luggage and extra friendly service should help Southwest. The merger is estimated to cost Southwest $1.4 billion dollars; Air-Trans income for 2010 was around $128 million, and along with the 138 new planes and locations Southwest will acquire, the benefits to cost seem great. Competition at Atlanta’s Hartsfield-Jackson International is fierce. Delta Airlines flew nearly 56% of the total passengers from Atlanta in 2009 and will be Southwest’s major competition (Challenges Delta with $1.4B Deal). Southwest will by far be the biggest low-fare option at the Atlanta hub.…

    • 1237 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Merging of United Airlines

    • 6678 Words
    • 27 Pages

    Cho, In Hye (Joanne) [2010524274] Cho, Mee Ji [2010524339] Chung, In Kwon [2010562173] Ferraro, Emma [2010521088] Ghale, Pema [2010500967]…

    • 6678 Words
    • 27 Pages
    Powerful Essays
  • Satisfactory Essays

    Air Canada Mergers

    • 241 Words
    • 1 Page

    The airline industry is an oligopoly with low-profit margin and high fixed cost business impacted by government regulations, high taxes, high labor costs, and fluctuations in fuel prices. In addition to revenues from passenger tickets, the industry earns additional revenue from transporting cargo, selling frequent flier miles to other companies and up-selling in flight services. It is common to see alliances and mergers are common in this industry. Air Canada (AC) is Canada’s largest domestic and international airline and part Star Alliance that consists of 28-member airline network, it offers its customers access to approximately 1,300 destinations in 190 countries. AC continues to explore opportunities for revenue enhancement and cost…

    • 241 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Airline executives claim that mergers are good for passengers as they provide more service to more destinations. If this were true than more destinations would mean the opportunity cost for passengers in the form of time spent traveling to larger airports, would be lowered.…

    • 830 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Tale of two airlines

    • 556 Words
    • 3 Pages

    Poor management control over gate boarding and gate closing, failure to monitor departure time schedule for flights. International flight departed ahead of scheduled time without regard as to passenger list and reasons for possible passenger delays.…

    • 556 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Boeing and Airbus; two longtime rivals fighting over market share in an extremely volatile market due to high research and development costs and constant changes in market demand was the cause for Boeing to take drastic protective measures. Boeing which at the time was one of the largest commercial aircraft manufacturer and third largest aerospace defense contractor decided to merge with McDonnell Douglas. McDonnell Douglas also produces commercial aircraft but held much less of the market share than Boeing. The intent of this paper is to describe the search and screening process Boeing used which is broken down in to three categories: legal, financial and operational, discuss the valuation criteria, analyze the negotiation and bidding process and determine what kind of financing Boeing used to secure McDonnell Douglas.…

    • 943 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Airline Deregulation

    • 1597 Words
    • 7 Pages

    The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth, productivity, and the public has seen significant decreases in fares. The effects that Airline deregulation has had are generally a positive effect on the industry. This essay examines how further deregulation of the federally controlled and owned air traffic control systems will allow for further growth of the industry in the future.…

    • 1597 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Empowering your employees with industry standard service training and motivated working attitude company-wide will help the company thrive in the Network Age. Airline customer service experience depends on more than Information Technology only. Human Factors went above and beyond what IT can provide and could jeopardize the service quality. IT Managers today should take human factors more seriously than ever.…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ocean Carriers Case

    • 1783 Words
    • 8 Pages

    As shown in Exhibit 3, the number of new ships delivered in 2001 is 63. Since there had been very few scrappings in recent years, and most of the capacity of the worldwide fleet of capesizes was fairly young, we can assume that the change of fleet size during 2001 mainly comes from these new ships. Similarly, we can expect the fleet size in 2002 will be:…

    • 1783 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Tale of Two Airlines

    • 747 Words
    • 3 Pages

    * 5 minutes after the scheduled departure time, the next flight to London was delayed by an additional 2Hrs 30 Minutes due to mechanical problems.…

    • 747 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Airline Deregulation

    • 1063 Words
    • 5 Pages

    On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.…

    • 1063 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    LUFTHANSA GROUP AIRLINES BUSINESS UNIT COMPANY PROFILE • Deutsche Lufthansa – European largest airline fleets • Consists of international and domestic airlines such as Austrian Airlines, • • • • Swiss International Airlines, Air Berlin, Germanwings Two main hub located in Frankfurt and Munich Lufthansa among 5 main founders for Star Alliance (largest airlines alliance) provide services to 197 international destination in 78 countries across Africa, Americas, Asia and Europe Five main business -Lufthansa passengers (Airline), logistic (cargo),MRO (Maintenance), catering (LSG Sky Chefs) and IT services (dissolve in financial year 2015) Mission & Objective Lufthans a 1st choice Partners Employe es customer Sharehol der SITUATIONAL ANALYSIS -SWOT STRENGTH World leading aviation group Knowledge- based (know how)…

    • 1027 Words
    • 8 Pages
    Satisfactory Essays

Related Topics