AIR FRANCE AND KLM IN LATIN AMERICA

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1 AIR FRANCE AND KLM IN LATIN AMERICA 1/17

2 CONTENTS TO ENSURE THE BEST POSSIBLE NETWORK BETWEEN LATIN AMERICA, EUROPE AND BEYOND TO AFRICA, THE MIDDLE EAST AND ASIA 1) Destinations and frequencies 2) A majority of connecting passengers 3) Two powerful hubs AIR FRANCE AND KLM IN POLE POSITION BETWEEN EUROPE AND LATIN AMERICA 1) The highest number of seats available 2) Promising markets ENSURING CUSTOMER LOYALTY 1) Who are Air France and KLM s customers to and from Latin America? 2) A commercial policy aimed at service quality both on the ground and on board KEY FIGURES 2/17

3 I. TO ENSURE THE BEST POSSIBLE NETWORK BETWEEN LATIN AMERICA, EUROPE AND BEYOND TO AFRICA, THE MIDDLE EAST AND ASIA 3/17

4 1) Destinations and frequencies When it was set up in 2004, the AIR FRANCE KLM group fixed itself an objective to ensure the best possible services between Europe and the rest of the world, in an effort to create a global network with convenient schedules for customers. Every week, Air France and KLM operate 123 frequencies 1 each way between Paris, Amsterdam and the Latin American continent (Argentina, Brazil, Chile, Colombia, Ecuador, French Guyana, Mexico, Panama, Peru, Surinam and Venezuela). The 2 airlines operate non-stop flights to 13 destinations on the continent. 1 This figure does not include other countries in the region served by Air France and KLM: Aruba, Curaçao, Bonaire, Fort-de-France, Haïti, Havana, Pointe-à-Pitre, Punta Cana, Santo-Domingo and Saint-Martin. 4/17

5 2) A majority of connecting passengers On routes to Latin America, the vast majority of Air France and KLM passengers have connections at the Paris-Charles de Gaulle and Amsterdam- Schiphol hubs, arriving from or travelling to the rest of Europe, Africa, Middle East and Asia. 5/17

6 Air France and KLM ensure that their two networks are accessible to their customers in Latin America. This dual network is structured around the hubs at Amsterdam-Schiphol and Paris-Charles de Gaulle, the most powerful in Europe in terms of connecting opportunities. Of all the destinations served by both airlines, fare combinability enables customers to choose between a trip on KLM via Amsterdam and a trip on Air France via Paris, on the basis of the addition of two half round trips. Customers can benefit from connections through one or other of the two hubs, on the outbound and inbound legs, and easy access to a wide choice of departure times and the best possible fares. Finally, to increase the possibilities of connecting at Roissy or Schiphol, the two airlines schedules are interwoven between the two airports, with 15 daily flights. 6/17

7 II. AIR FRANCE AND KLM IN POLE POSITION BETWEEN EUROPE AND LATIN AMERICA 7/17

8 1) The highest number of seats available In summer 2009, Air France and KLM are ranked first among all airlines in terms of available seat kilometres between Europe and Latin America, with a 20% share of capacity (summer 2009). Similarly, the SkyTeam alliance, whose members include Air France, KLM, Delta Air Lines and Aeromexico, is number one in Latin America with a 27% share of capacity, compared with 26% for oneworld and 18% for Star Alliance. NB: every season, market share increases considerably, especially in Central America, as well as in the Southern Cone (Argentina, Chile). 8/17

9 2) Promising markets For Air France and KLM, the Latin America countries, beyond the current economic crisis, are promising markets in which both airlines have successfully invested and on which they maintain their commitment. For the Group, holding a leadership position is particularly important because the international nature of this region, which has several emerging economic powers, promises yet more in the future. 9/17

10 III. ENSURING CUSTOMER LOYALTY 10/17

11 1) Who are Air France and KLM s customers to and from Latin America? Customer surveys are conducted regularly by Air France and KLM to get to know the "profiles" of their passengers, especially to and from destinations in Latin America. The results of these surveys enable the airlines to make commercial and strategic choices. 11/17

12 2) A commercial policy aimed at service quality both on the ground and on board a) On the ground Two call centres Air France and KLM s Latin American customers can use three call centres. One in Santiago de Chile, opened in 2002 and another in Rio de Janeiro, opened in The Santiago call centre is open seven days a week, from 08:00 to 20:00 on weekdays and from 9:00 to 18:00 on weekends (17:00 in summer). It handles calls from Argentina, Chile, Colombia, Ecuador, Mexico (Air France flights*), Peru and Venezuela. It can be contacted at (800) It employs 58 people. The Rio de Janeiro call centre is open on weekdays from 9:00 to 19:00 and Saturday from 9:00 to 15:00. It handles calls from Brazil. It employs 40 people. * Calls from passengers booking on KLM flights are handled by the Fort Lauderdale call centre (Florida). 10 websites in Latin American countries Accessible 24 hours a day, Air France and KLM s 10 websites in Latin America provide a clear, up-to-date presentation of all of both airlines offers, with most giving customers the possibility of booking online, finding the best fare available, paying by credit card and checking in from home: (Argentina) et /travel/br (Brazil) (Chile) (Colombia) /travel/ec (Ecuador) et /travel/mx (Mexico) /travel/pa (Panama) (Venezuela) Airport lounges Before flight departure, Air France and KLM welcome their customers travelling in la Première ou Affaires as well as SkyTeam Elite Plus cardholders at two private lounges in Rio de Janeiro and Sao Paulo, as well as their airport lounges in Buenos Aires, Bogota, Caracas, Mexico and Santiago de Chile. In these lounges, customers can relax or work: there are also snacks, business and communications areas, printers, international press, comfortable seats and LCD screens. 12/17

13 At Paris-Charles de Gaulle, dedicated Air France agents are on hand to help Latin American passengers On arrival and departure of Latin American flights, specially trained Air France agents are on hand to provide Latin American passengers with assistance. These agents provide an interface between these customers and hub staff, particularly if translation assistance is needed, or to provide their expert knowledge of Latin American culture, to meet customers needs in the best way possible. This service is particularly appreciated by passengers with connections. b) On board 1,300 stewards and stewardesses (cabin crew) who speak Spanish and close to 200 who speak Portuguese fly regularly on Air France s Latin American network. Among those speaking Portuguese, Air France specially recruited approximately 70 Brazilian cabin crew to serve customers on flights to and from Rio and Sao Paulo. An in-flight entertainment programme adapted to Latin American passengers For its Latin American passengers, Air France offers a new selection of approximately 25 films every month dubbed in Portuguese and approximately 30 films dubbed in Spanish, as well as one Spanish film, one Latin American and one Brazilian film in its original version. For all its passengers, Air France is phasing in a new entertainment programme on all its long-haul flights and in all travel classes. This offer of 85 movies and series, news programmes, 250 hours of music programs, with more than 3,000 titles, is unique in its quality and scope. The entire film programme, music and TV amounts to almost 500 hours. The programme also includes video games and language courses. This new programme is already available on most Boeing ERs and Boeing ERs as well as on the entire long-haul fleet. The entire fleet of Air France Boeing 777s will be equipped with this programme by summer All the new video and audio programmes are is available on demand and thus enable customers to start the programme when they wish. With more than 32,000 individual screens, Air France is the largest in-flight cinema in Europe in terms of the number of films on offer. On 12 September 2008, Air France was awarded the prize for the best in-flight entertainment programme by the World Airline Entertainment Association (WAEA). 13/17

14 Latin American music A selection of 200 CDs of different types of music enables passengers to select a programme on demand. This selection includes Latin American music (Seu Jorge, Raul Paz, Compay Segundo, Omara Portuondo, Celia Cruz etc.). In addition, a two-hour musical programme is prepared by Radio Latina for Air France passengers and is renewed every two months. c) Flying Blue, a powerful frequent flyer programme With its 15 million members (including 500,000 in Latin America) and an aim to become the leading European frequent flyer programme in Europe in terms of customer satisfaction, Flying Blue offers everyone the opportunity to earn and use Miles not only on the entire AIR FRANCE KLM network, but also on flights of the 10 SkyTeam airlines and 20 other partner airlines which GOL and Varig will soon be joining for domestic destinations in Brazil. In all, a global network of 18,000 flights and 900 destinations is available to passengers so that they can enjoy all the benefits of Flying Blue. In addition, more than 100 other non-airline partners have joined the Flying Blue programme, which increases the possibilities of earning or using Miles, including hotel stays, car rentals and other services. Available in four levels (Ivory, Silver, Gold and Platinum), the Flying Blue programme recognizes each customer s travel pattern and awards them with Miles accordingly. Air France and KLM offer Platinum members the opportunity to keep their status and related benefits for life after 10 years spent at Platinum level. The Flying Blue programme offers its Latin American members the opportunity of independently managing their account at any time on the Air France and KLM websites and receiving exclusive benefits only available to users. 14/17

15 d) Close to 680 Air France and KLM agents working in Latin America There are approximately 540 Air France staff (including staff at the airport, call centres in Santiago de Chile and Rio, administrative functions and cargo). There are close to 140 KLM staff. The Latin American market is served by four regional AIR FRANCE KLM divisions: - Brazil (head office in Sao Paulo) - Southern Cone (head office in Buenos Aires): Argentina, Bolivia, Chile, Uruguay, Paraguay - Mexico and Central America (head office in Mexico) - Andean Community (head office in Bogotá) Colombia, Ecuador, Peru, Venezuela All four divisions are each headed by a regional Air France-KLM manager. The teams from both airlines share the same premises and sell either the Air France or KLM brand, via a joint Sales and Marketing Action Plan. Air France and KLM staff use the same commercial tools, which simplifies sales and makes purchasing a ticket easier for customers. Marketing services are also grouped together and promote the two brands. 15/17

16 IV. AIR FRANCE KLM KEY FIGURES 16/17

17 1) Air France & KLM in Latin America - A turnover of 1.36 billion euros, i.e 7% of the total passenger revenue - 13 destinations served non stop from Paris and/or Amsterdam - 7 beyond destinations in Mexico on a codeshare basis with Aeromexico - 6 beyond destinations in Central America on a codeshare basis with Copa - Soon 13 new destinations in Brazil on a codeshare basis with GOL/Varig - 75% connecting passengers on the Paris/Sao Paulo route - Air France and KLM number 1 with 20% of available seat kilometres - SkyTeam number 1 with 27% of available seat kilometres - Available seat kilometres up 55% between 2004 and Close to 62,500 seats available each week ; - 2 call centers - 10 web sites in Latin American countries - 1,300 cabin crew speak Spanish - Close to 200 cabin crew speak Portuguese (including 70 Brazilians) - A team of 680 Air France and KLM staff in Latin America 2) AIR FRANCE KLM Group - Leading global airline group in terms of revenue (24.11 billion euros in 2007/08, +4.5%) - Leading global airline group in terms of cargo (11.36 billion revenue tonne kilometres in 2007/08, +3.3%) million passengers, +1.8% destinations (summer 2009) aircraft (December 2008) - 104,600 staff (2008) Breakdown of activities (fiscal year 2007/08): - Passenger operations 80% - Cargo 12% - Maintenance 4% - Others 4% Breakdown of capital at 30 September 2008: - French State : 15.7% - Employees : 11,2 % - Treasury: 1.6% - Float : 71,5 %. 17/17

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