Air France-KLM's 'Transform 2015' Turnaround Program

Air France-KLM's 'Transform 2015' Turnaround Program
Case Code: BSTR424
Case Length: 16 Pages
Period: 2003-2012
Pub Date: 2013
Teaching Note: Not Available		 Price: Rs.500
Organization: Air France KLM
Industry: Aviation
Countries: Europe; Global
Themes: Strategy Implementation, Turnaround Management, Reorganizing
Air France-KLM's 'Transform 2015' Turnaround Program
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case is about the turnaround program of French-Dutch airline, Air France KLM. The airline was formed through a merger of French and Dutch carriers in 2004. The case describes the cross border alliance and the airline's good performance in the initial years post merger. However, from 2009, the company was struggling to remain competitive in the changing global aviation industry. According to some analysts, the differences in culture and management styles of both Air France and KLM became a hindrance to the realization of the synergies of this partnership.

The case highlights the challenges faced by the airline due to increasing fuel costs, competition from low-cost airlines, and the after-effects of the financial crisis. The case discusses "Transform 2015", the turnaround program adopted by the airline in 2012. It highlights the key measures adopted in the turnaround program. While some industry experts were convinced that the turnaround strategies would help revive the airline, others were sceptical about it. The case ends with a discussion on the challenges that lie ahead of the company.

Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the problems faced by Air France-KLM
  • Evaluate the turnaround strategies adopted by the airline
  • Understand the issues and challenges in turning around a company
  • Understand issues in reorganizing and the pros and cons of using different organizational structures
  • Understand the issues and challenges in cross-border merger and acquisition deals
  • Analyze the issues and challenges in transcontinental and cross-cultural alliances
  • Analyze the future challenges of the airline and how these can be overcome

Contents

Keywords

Turnaround; Strategy implementation; Post-merger integration; Restructuring; Reorganizing; Organizational structures; Holding company structure; Change; Transformation; Transform 2015 Turnaround Program; Global aviation industry

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