Abstract

The case discusses the merger of Air France and KLM, the two leading airlines in Europe. It describes recent trends and studies the ongoing consolidation in the European aviation industry. The case presents in detail the need and rationale behind the decision to merge and the perceived synergies by both the companies from the merger. It also discusses the possible threats to the merger including cultural differences and various other issues. Finally, the case ends with a debate whether the merger will be successful or not in the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Mergers
• Consolidation in European Civil Aviation Industry.

Keywords

Air-France, KLM Royal Dutch Airlines, European Civil Aviation Industry, Merger & Acquisition, Synergies in Merger, Alliances of Airline Companies, Sky Team Network