The Air France–KLM Group released details about its long-term strategy in a presentation recently given by its chief executive officer, Ben Smith. The Franco-Dutch company operates a range of brands including Air France, HOP!, KLM, KLM Cityhopper, and Transavia.
In the medium term, Smith hopes to raise the company’s profit margins to 7-8%. To set itself up for success, the firm will undertake strategic shifts related to its three main businesses:
- Air France will place a greater emphasis on its premium offerings for first and business class passengers;
- KLM will capitalize upon its strong network to grow its capacity to connect travelers through Amsterdam;
- Transavia will grow its market share among LCCs, by setting up another operating base at Montpellier–Méditerranée Airport in Southern France.
Lastly, the company will simplify its organizational structure by making changes to its management staffing.