Air France-KLM's 'Transform 2015' Turnaround Program
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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 |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Air France was founded on October 7, 1933, after the merger of five French private airlines (Air Union, Air Orient, Société Générale de Transport Aérien (SGTA), CIDNA, and Aéropostale) operating on European routes. In its early years, the airline incurred huge losses. Moreover, World War II (1939-45) had an adverse impact on the global aviation industry. After World War II, the aviation industry in France was nationalized and Air France became a state-owned entity....
Koninklijke Luchtvaart Maatschappij NV, commonly known as KLM, was the world's oldest airline operating under its original name. It was founded on October 7, 1919, to serve the Netherlands and its colonies.
In 1934, the company started its international operations. During World War II, the company temporarily suspended its operations. After the war, it resumed operations and kept improving its services. It launched several quality programs to face the competition.
In 1959-60, KLM pressed into service its first Douglas DC-8 aircraft. In 1971, the Boeing B747 was first used on long-haul routes by KLM. In 1989, KLM entered into an important alliance with Northwest Airlines to tap the US market...
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