MY CHOICE KLM AIRLINES

KLM Airlines

KLM Airlines

Introduction

The position of renowned leaders as the KLM Royal Dutch Airlines? which is one of the oldest airlines in the world? is also under a threat since the competition is constantly growing stronger and to maintain the leading position in the world market companies are forced to develop new strategies and approaches to increase the effectiveness of their performance and to gain a better competitive position. (Calder? 2002? 202-11) In such a context? the effective management and the ability of a company to adapt new strategies to improve its position in the world market become crucial for the survival and further progress and the development of the KLM Royal Dutch Airlines is particularly noteworthy in such a context.

Company overview

Air France-KLM provides air passenger and cargo transportation services worldwide. It also offers industrial maintenance and other air-transport-related services? including catering and charter services. The company primarily operates in the Europe and North Africa. It is headquartered in Paris? France and employs about 102?400 people. (Calder? 2002? 202-11) The company recorded revenues of E23?073 million during the fiscal year ended March 2007? an increase of 7.6% over 2006.

The operating profit of the group was E1?240 million during fiscal year 2007? an increase of 32.5% over 2006.The net profit was E891 million in fiscal year 2007? a decrease of 2.4% compared to 2006. The KLM Royal Dutch Airlines is the oldest airline company? which was founded in 1919 in Netherlands and it has preserved its original name till the present epoch. Throughout its long history the company has managed to take the leading position in the world aviation industry and it is one of the most popular and well-known companies in the world. Air France-KLM is an airline company.

The company's main business activity is passenger transportation. The company is also involved into other business activities such as cargo? industrial maintenance and other air-transport related activities? including catering and air transport services. uring the financial year ended March 31? 2007? the company operated flights to 240 destination cities and carried 73.5 million passengers (Calder? 2002? 202-11).

Further? through its membership in SkyTeam and its partnerships with approximately 30 airlines? the company operated a global network of 728 destinations in 149 countries? linked by 16?615 daily flights. Such a wide network increases the company's reach and ability to generate revenues from both international and domestic markets. owever? the rising fuel prices are likely to have a direct impact on the company's margins.

The Company's Principal Customer Segments Within The Market

This summer season the Group is continuing its development with capacity up by 5% for Air France and KLM. In long-haul the Group is mainly strengthening its operations in the most dynamic markets? particularly Asia? South America and the Middle East? increasing both the number of flights and bringing higher-capacity aircraft into service. (Littman? 2002? 102-113) The Air France-KLM group is developing its Asian services and? since May 28? 2006? has been offering a fifth Chinese destination? Chengdu? operated twice a ...