Air France KLM SA Announces Update on Business Transformation Plan Including Creation of New Regional Division

Air France KLM SA presented an update on the company's business transformation plan, TransForm 2015. The objective of the plan is to reduce controllable costs by 20% to reach the industry level. Amongst other things, the Company will also establish a new organization, streamlining processes and procedures, reducing the number of hierarchical levels, improving management practices and deepening the integration with KLM. The Company also announced that its goal is to return to break-even for point to point service in 2013 and for the entire short and medium haul business in 2014. The first steps include developing the Transavia subsidiary under its own or another brand. The regional commercial offensive also will be extended to the rest of the point to point network, including Orly, with all components of the offer clarified and optimized. Finally, a true, standardized regional division will be created to optimize the working relationship between Air France and its regional subsidiaries. Also, the Company intends to accelerate the transformation of freight particularly in the areas of purchasing, fleet and business development via enhanced integration between Air France, KLM and Martinair; and develop growth segments in maintenance.

Source: Reuters