The company Air France

Topics: Airline, SkyTeam, Air France Pages: 7 (1868 words) Published: April 1, 2013

Year 2012/2013
A00191574 LENORMAND Ségolène

Table of contents

External Environment _______________________________________________________ Page 2 Main competitors ______________________________________________________ Page 2 Analysis PEST ________________________________________________________ Page 3

Type of Service Page 3
Lovelock’s classification _________________________________________________ Page 3

Target Customer Group _______________________________________________________ Page 4
STP __________________________________________________________________ Page 4

Characteristics of the Service ___________________________________________________ Page 5
7P’s __________________________________________________________________ Page 5

Approach Customer Service ___________________________________________________ Page 6

Use of atmospherics __________________________________________________________ Page 6

Bibliography _________________________________________________________________ Page 7 The company Air France has been found in 1933 by the merger of several airlines which had already built extensive networks across Europe. By the end of the Second World War, Air France owned a fleet of 85 aircraft operating over 4 networks. After the war, on June, 26th, 1945, all of France’s air transport companies were nationalized; acquiring rights to all French airlines routes. Air France was set up on the 1st of January 1946. The merger of the two airlines Air France and Netherlands-based KLM Royal Dutch Airlines has been announced on September 2003 after growing and the expansion of the activity. But it has become reality on May, the 5th, 2004. The headquarters of the company is based at Roissypôle, Paris-Charles de Gaulle Airport, at Tremblay-en-France.

Air France-KLM is born of a merger between two major European airlines in 2004. Faced with an airline market, in the middle of diversifying with the emergence of low-cost, both airline companies needed to consolidate their position. Through the merger synergies and a good strategy, Air France-KLM has conquered the air market and become a world leader: First World in terms of international traffic in passengers, the second largest global cargo activity and a leading global provider of maintenance services. Air France-KLM with a turnover of 24.1 billion in 2007, employs more than 100,000 employees and has a fleet of 607 aircraft.

Main competitors
Air France-KLM’s number of competitors has been increase the recent years: the SNCF (Société Nationale des Chemins de fer Français), the historical companies and the recent emergence of many low-cost airlines. Indeed, in the country itself, the most important competitor of Air France-KLM is the railway SNCF because it has fewer constraints to take it. It is the faster and easier way to travel on short distances. Some of the major airlines competitors of Air France-KLM S.A. are AMR Corporation, British Airways Plc, UAL Corporation, Lufthansa, Virgin Atlantic Airways, Swiss International Air Lines Ltd., Continental Airlines, Inc., Delta Air Lines, Inc., and US Airways Group, Inc.

Analysis PEST
About the environment political, there is a strong political power and regulatory safety standards important. The European Union represents a stable region and the UE « OpenSky » agreement can offer further development solutions and cross-border consolidation to the carrier.

The social environment is particularly unfavorable to the carrier because of the strongly unionized personnel and for the strike risk to which the carrier remains exposed, especially when obliged to reduce personnel in adverse circumstances. As the whole industry, the carrier is subject to the fluctuation consumers’ preference,...
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