13.04.2026
Air France and KLM Implement a Highly Coordinated Sales Strategy:
Synergies Estimated at 92 Million Euros in 4 Years
Patrick Alexandre, Executive Vice President of International
Commercial Affairs and Operations at Air France, and Paul
Gregorowitsch, Executive Vice President Commercial at KLM,
presented the challenges and scope of the sales strategy implemented
by both airlines on international markets. The Group’s
sales strategy is based on a series of fundamentals that enables
to meet customers’ needs: complementary networks, combinable
fares, joint frequent flyer program and membership of a major
alliance, SkyTeam.
“Sales made on international markets account for
58% of Air France-KLM’s total passenger revenues”
declared Patrick Alexandre on the occasion of a press conference
held at Roissy airport today. “In this respect, the
implementation of a coordinated sales strategy on international
routes is one of the Group’s major challenges. The
aim is to expand the presence of both airlines, while capitalizing
on their respective assets, in order to offer customers
a global, streamlined product”.
Paul Gregorowitsch added: “On all markets, the strength
of the merger between Air France and KLM stems from the
determination of both airlines to closely coordinate their
different, but highly complementary, sales policies, in
order to add to their experience and expertise. Over one
year of working together has shown that this objective is
shared by our 7,510 employees based abroad. This is the
best guarantee of success for Air France-KLM.”
Action plans were drawn up after a phase of consultation
and preparation carried out by joint working groups. Their
implementation in the field, well under way, will generate
substantial synergies: about 8.3 million euros in the first
year (April 2004-March 2005), 29 million this year (April
2005-March 2006), and 92 million in 4 years. These amounts
form part of the total synergies generated by the Air France
and KLM combination: 90 million euros in the first year
and 580 million in year 4.
The implementation process has been particularly rapid
in stations, where management and operations are concerned.
Air France and KLM have rationalized their sales expenditure
on international markets through the joint rental of offices
and ticket offices wherever possible, and the renegotiation
of station handling services.
Three levels of commercial governance have been set up
in order to define the guidelines for sales cooperation
between the two airlines (Commercial Committee), coordinate
the actions of regional managements and establish priorities
(Area Commercial Committees), and finally to define in detail
and concretize action plans in the field (Regional Management
Committees).
The local sales organization at Air France and KLM has
been divided up into «coordinated markets»,
served by both airlines and where present structures have
been maintained, «complementary markets» where
one of the airlines is not present but benefits from the
partner airline’s sales representation; at last, a
few markets where there is greater integration of sales
forces, led by one regional manager.
“The merger between Air France and KLM has given
rise to a leading European player and the world’s
leading airline group in terms of turnover, boosting two
highly complementary brands.”, concluded Patrick Alexandre
and Paul Gregorowitsch. |
