Air France-KLM Europe’s Main SkyTeam Airline

Along with IAG and Lufthansa, Air France-KLM is the other heavy-weight of European aviation. The group, as the name gives away, is made up of two carriers: Air France and KLM. They are the flag carriers of France and the Netherlands. Let's explore how the airline, and group, is structured and how it operates its fleet and network.

How Did the Air France-KLM Group Come to Exist?

The wake of 9/11 was tough for many airlines around the globe. It also forced some changes that had been in the pipeline for some time to be applied to some corporate structures. Specifically, a lot of consolidation took place. Consolidation that gave birth to some huge, much stronger, airline groups that had and have a much greater stability. This was also the case for Air France and KLM.

The French and Dutch airline merged in 2004 forming one of the largest carrier groups in Europe and the main Skyteam member in the continent. The two airlines, although owned by the same group and having very strong operational synergies, operate as standalone entities.

Who Are the Air France-KLM Stakeholders?

Currently the respective governments of France and the Netherlands still have a strong presence in the group's equity. A strategic presence that allows the two European countries to protect their national interests. This is the current equity stake structure of the airline:

Entity	Stake
French State	28,6%
Dutch State	9,3%
CMA CGM	9%
China Eastern	4,7%
Delta Air Lines	2,9%
Other Investors	44,25%

Transavia AF-KLM's Low-Cost Carrier Attempt

To better compete with Europe's aggressive ultra-low-cost carriers AF-KLM decided to start their own LCC. Transavia is just that. A carrier that is in all aspects a low-cost carrier that however offers the possibility of accruing Flying Blue miles while travelling. Currently Transavia operates a fleet comprised of:

• 4 Boeing 737-700
• 40 Boeing 737-800
• 6 Airbus A321neo

The Airbus A321neo will become the dominant plane in the fleet in the coming months and years. The plan is to phase out the Boeing 737s and operate an all-Airbus fleet.

Which Airline Alliance is Air France-KLM Part Of?

Both airlines were founding members of the SkyTeam alliance. Therefore, it was quite easy for them to join forces in 2004 as they were already part of the same alliance. The French-Dutch airline is the main representative of Skyteam in Europe and boasts important joint ventures with Delta across the Atlantic.

The Shared Flying Blue Loyalty Program

Another feature the two airlines share, also with Transavia, is the loyalty program. Flying Blue, a clever word game referring to the predominance of blue in both airline's color scheme, is among the most popular and used frequent flyer program out there in Europe. It is quite a powerful loyalty program as it allows to build up and redeem miles on the Air France-KLM arlines along with all other SkyTeam carriers.

The program also offers a feature that allows young travellers, under 18 years of age, to build up miles and families to pool theirs.

How Does the Group Work and Operate?

As Air France and KLM continue to operate as separate entities, at least customer side, they maintained their operations in their respective hubs of Paris CDG and Amsterdam Schiphol.

KLM of the two carriers is the one with the strongest Asian and southeast-Asian presence of the group. The Royal Dutch Airlines use airports such as Seoul, Singapore, and Kuala Lumpur as a tiny hub to operate further spokes to other regional destinations. This increases the airline's presence in the region. However, KLM also operates an extensive network in North and South America.

Air France on the other hand has a stron prensence in Africa, balancing out KLM's almost total absence from the continent. Air France also pushes its presence to the Pacific Ocean where it serves as a lifeline between mainland France and its overseas territories.

Where is KLM's Hub Located?

KLM's main hub is situated in Amsterdam's Schiphol international airport. The airport is a real mega-structure with 6 runways allowing operations even the toughest weather conditions.

How is KLM's Fleet Structured?

Despite the Netherlands not having a huge population, the flag carrier is a real powerhouse in civil aviation. Therefore, there is a need for a well structured and thought through fleet.

The KLM fleet features both narrow and wide body planes. The narrow-bodies are the backbone of the European operations while the wide-bodies allow intercontinental connections across the globe.

KLM's long-haul fleet features:

Manufacturer	Type	Units
Boeing	777-300ER	16
Boeing	777-200ER	15
Boeing	787-9	13
Boeing	787-10	11
Airbus	A330-200	6
Airbus	A330-300	5

While KLM's short haul fleet operates:

Produttore	Tipologia	Quantita
Boeing	737-800	31
Boeing	E190	26
Boeing	E195-E2	22
Boeing	E175	17
Boeing	737-700	6
Boeing	737-900	5
Airbus	A321neo	5

Where is Air France's Primary Hub?

Air France operates out of another of Europe's mega-hubs, Paris Parigi Charles de Gaulle. An airport boasting 4 parallel runways capable of handling simultaneous takeoffs and landings.

How is the Air France Fleet Structured?

Air France's fleet is even larger and impressive of KLM's. The French flag carrier operates in excess of 240 planes to connect every spoke in its route network.

Contrary to KLM, Air France has a domestic market to serve and uses some of its smaller regional jets to do so. Regular narrow-bodies are commonly seen on intra-European flights while wide-body jets are the workhorses of the long-haul operations.

Air France's long-haul fleet features:

Manufacturer	Aircraft Type	Units
Boeing	777-300ER	43
Airbus	A350-900	37
Boeing	777-200ER	18
Airbus	A330-200	12
Boeing	787-9	10

While the short and medium haul fleet features:

Produttore	Tipologia	Quantita
Airbus	A220-300	42
Airbus	A320-200	36
Boeing	E190	23
Airbus	A319-100	9
Boeing	E170	13
Airbus	A321-100	14
Airbus	A318-100	6