"Transform 2015" is dead. Long live "Perform 2020" !
It was on Sept. 11th., in Paris, before members of the international press, that Alexandre de Juniac, the Air France KLM C.E.O. presented the group’s orientations within the next five years ; major key words like growth and competitiveness came to the fore.
The group plans to continue reducing their debt, amounting to € 5 billion, and returning to profitable growth.
The "Perform 2020" plan provides for the development of the leisure market, which will be provided by Transavia France, to compete with other European low-cost airlines in this very promising market. Its fleet will increase from 20 to 34 units with 250 new pilot jobs to boot. The opening of new bases in Europe is predicted although nothing more is known at present.
Alexandre Juniac foresees a one billion euro investment in Transavia.
Alexandre De Juniac, Chief Executive Officer - Air France-KLM Group:
"This is a job creation and growth project in France. It is open to Air France pilots on a voluntary basis. If they want to join us, they can. If not, they don’t have to. There are opportunities for them because, for many Air France pilots it’s an opportunity to become a captain which, in a career, is great."
To restore the balance, "Perform 2020" provides for a further reduction in their freighter fleet from 14 to 5 aircraft in 2016.
Finally, the establishment of a branch which would regroup their regional company Hop! with other Air France related traffic, is today under discussion.
One way for Air France to restructure its short and medium-haul, still deficient, operations, and to accelerate the pace in the face of competition.
Frédéric Gagey, Chief Executive Officer - Air France:
"I think the role of a business, and of social partners, is to suggest going faster to be able to grasp these growth opportunities, because over time it will lead to the development of employment. That's the economic situation of the company where you work, so I do not think it wise, NOT to arrive very quickly, at a positive outcome in this negotiation."
Optimism amongst the various levels of management is clearly displayed. Now it’s up to Perform 2020 to prove itself.