Bloomberg Aptitude Test

Powerful Essays
Bloomberg Aptitude Test
Part 1 - News Analysis
Air France-KLM Seeks New Look After Brush With Bankruptcy
March 4, 2014 (Bloomberg)——Air France-KLM Group, Europe’s largest airline, is getting a new look. Chief
Executive Officer Alexandre de Juniac is attempting a turnaround from near bankruptcy by adding a range of luxury accommodations to its long-haul fleet. Air France-KLM anticipates spending 1 billion euros ($1.37 billion) on the planned upgrades over three to four years.
Many of Air France-KLM’s long-haul competitors——such as Etihad Airways PJCS, Qatar Airways Ltd., and Singapore Airlines Ltd.——have already upgraded their jets. “We can’t compete with these Gulf and
Asian carriers without providing the best service and product in class,” said de Juniac.
De Juniac says that Air France-KLM’s fully reclining business-class seats will be longer than those offered by competitors, with down pillows and comforters, bigger media screens, and new gourmet menus. He said he personally insisted on more room for fliers’ feet. “We think people are fed up with being badly treated,” de
Juniac said. He believes that people “will be willing to spend a little more” on tickets that include these new amenities. Higher fares on long-distance flights make premium passengers especially valuable. Of 15 million travelers on those flights for Air France last year, the 1.6 million fliers who used business class contributed one- third of its revenue. Passengers flying abroad in premium-class seats rose 4.2 percent in 2013 from a year earlier. To spread his vision of a new face for Air France-KLM, de Juniac said he plans to double or triple the advertising budget. The airline has 150 people working on social media networks and will announce a new global advertising campaign and a communication investment strategy this month, he said.
Question 1 of 3 in this set
1. Which of the following is identified as a planned upgrade to the Air France-KLM fleet?
A)
B)
C)
D)

A new social media

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