Air France - KLM to create 'Cargo European House'

Since the Air France-KLM Group was set up, the two airlines have made significant progress in their cargo operations achieving synergies such as network management, capacity swaps and coordinating freighter schedules. In addition, KLM has joined SkyTeam Cargo.

The founding principle of Air France-KLM is “One group, Two airlines, Three core businesses”. Hence, the focus in the coming years will broadly be on realizing synergies and not on organizational integration. However, in certain specific sectors, such as cargo, the group stated that joint entities would be introduced if justified by a strong business rationale.

As part of this strategy, Air France and KLM are creating a unified management body in their cargo businesses, called “Cargo European House”, which should be operational by the end of 2005. This team will be in charge of network management, marketing and sales, with each airline continuing to manage its own operations.

The aim of this initiative is:

• to create a single commercial offer for optimum customer benefits; 
• to consolidate and develop the position of Air France Cargo and KLM Cargo based on the dual-hub strategy with Charles de Gaulle and Schiphol as cornerstones;
• to secure the ongoing performance improvement in cargo and fully realize the substantial synergy potential.

The two Executive Vice Presidents of Air France Cargo and KLM Cargo will implement the new unified management body, under the responsibility of Michael Wisbrun, Executive Vice President of KLM Cargo. Marc Boudier, Executive Vice President of Air France Cargo, will define the interfaces between this new management body and both Air France Cargo and KLM Cargo. Michael Wisbrun will continue to be a member of the Air France-KLM Strategic Management Committee. Marc Boudier will remain EVP of Air France Cargo and a member of the Air France Executive Committee.

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