The Air France offensive on

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1 corporate.airfrance.com/en July 2011 The Air France offensive on departure from the French regions Air France is launching a commercial offensive on departure from four major regional cities: Marseille, Toulouse, Nice and Bordeaux. By organizing its network differently, optimized use of its aircraft and increased productivity, Air France is changing the way it works to improve competitiveness. Within this framework, Air France customers will benefit from the decrease in costs in the form of attractive fares, while preserving the products and services which are its hallmark on the market. The aims are ambitious: to develop a short and medium-haul network and regain market share in a highly competitive context. This project complements the efforts made by Air France to revitalize its medium-haul network, hard hit by the economic and air transport crises. In 2010, Air France introduced a new European offer, the result of which is very positive both from a commercial and economic point of view. With this new project involving all its employees in France, Europe and the Mediterranean, Air France intends to initiate a virtuous circle that will enable its mediumhaul operations to regain profitable growth, the foundation of the Air France-KLM group s strategy, while offering customers attractive fares and ensuring long-term employment.

2 Air France on the offensive in the French regions Air France on the offensive in the French regions This commercial offensive corresponds to a significant development in Air France s operations on departure from the French regions. Air France will be increasing capacity by more than 30%, shared between: the launch, in the medium-term, of 54 new routes on departure from four regional cities (Marseille, Toulouse, Nice and Bordeaux) to major European cities and the Mediterranean. These new routes, mainly aimed at leisure customers, will be served with several weekly frequencies; the increase in capacity on existing domestic routes, more than 80% additional seat capacity in some cases. Air France expects over 4.5 million additional passengers every year. In the medium-term, on departure from Marseille, Toulouse, Nice and Bordeaux, the Air France network will comprise: domestic flights, including the La Navette service to Paris-Orly and flights to the hubs at Paris-CDG and Lyon, flights to European destinations and the Mediterranean. Air France is proud to enable the French regions to strengthen their status as major European cities, as this offensive comes within the framework of the Air France-KLM group s profitable growth strategy. 2

3 How will this new strategy be implemented? How will this new strategy be implemented? The implementation of this new strategy is based on a significant reduction in operational costs of about 15%. This cost reduction will enable Air France to conquer new markets by offering an attractive offer in terms of destinations and products at fares which have never seen before. To reduce its costs, Air France is relying on various different factors: > A single aircraft type At each of the four regional airports, Air France will assign around ten mediumhaul aircraft such as the Airbus A320 with between 142 and 178 seats. 38 aircraft in the A320 family will therefore be based in these regions. The use of a modern fleet, made up of a single aircraft type, enables Air France to optimize its fuel consumption and rationalize maintenance costs. > An optimized use of aircraft The duration of daily use of aircraft will be optimized, increasing from 8 hours 15 minutes currently to 11 hours 40 minutes, representing a gain in productivity of around 40%. This optimization will be achieved:. with departures earlier in the morning and returns later in the evening,. with turnaround times reduced by five minutes at stations (30 minutes for A319s and 35 minutes for A320s). > Crew based in the regions The crews of flights departing from the cities concerned will now be based in the regions. To implement this new strategy, Air France will ask for volunteers among its crew, both cabin crew and flight deck crew. The volunteer crews will work more hours on a limited number of days. The flight attendants should work 650 flying hours per year on average, over a number days which is slightly less than 120. Pilots should work 715 flying hours every year on average, over a number of days slightly less than 130. This will enable Air France to reduce its costs per flight hour by approximately 15 to 20%, also including the savings made on the costs of stopovers, and hotels in particular, as crew will return home at the end of each rotation. This new organization may particularly appeal to the staff who already reside in these regions and who previously had to travel to Paris to start work. > More efficient ground operations thanks to the additional activity For ground staff, the additional activity provided by this project will allow better use of human and material resources throughout the day and therefore lower production costs. To allow turnarounds in 30 to 35 minutes, strong coordination between the teams on the ground and cabin crew has been set up. While ensuring flight safety, the objective is to optimize the time between the arrival of the aircraft, the disembarkation of passengers, boarding and flight departure. This increase in activity in the French regions also consolidates the position of the company as an employer in these areas. With more sustained activity in Marseille at first, followed by Toulouse, Bordeaux and Nice, Air France will benefit from productivity gains that will help reduce production costs. For each aircraft based in the regions, two crews made up of a flight captain, a co-pilot and 4 flight attendants on A320 (3 flight attendants on A319) will be required. 650 voluntary flight attendants and 350 voluntary pilots will be based in the regions in the medium-term. 3

4 1.3 million additional passengers to and from Marseille 1.3 million additional passengers to and from Marseille Starting on 2 October 2011 on departure from Marseille, Air France will be offering 13 new non-stop routes in France, Europe and the Mediterranean and will also be increasing seat capacity by 50%. This represents 1.3 million additional passengers per year to and from Marseille airport. In spring 2012, Air France will be implementing this new strategy on departure from Toulouse, Bordeaux and Nice. > Many more flights to destinations already served in France:. Bordeaux 24 weekly flights. Lille 18 weekly flights. Nantes 22 weekly flights. Paris CDG 49 weekly flights. Paris-Orly 112 weekly flights. Rennes 7 weekly flights. Toulouse 12 weekly flights > 13 new destinations: in France. Bâle Mulhouse 7 weekly flights. Biarritz 2 weekly flights. Brest 7 weekly flights in Europe. Athens 4 weekly flights. Copenhaguen 2 weekly flights. Dusseldorf 7 weekly flights. Eindhoven 3 weekly flights. Milan-Malpensa 14 weekly flights. Moscow 4 weekly flights. Prague - 2 weekly flights Mediterranean. Beirut 3 weekly flights. Istanbul 4 weekly flights in Morocco. Casablanca 4 weekly flights > These flights are in addition to the existing flight schedule: in France. Ajaccio 25 weekly flights (1). Bastia 26 weekly flights (1). Calvi 15 weekly flights (1). Figari 20 weekly flights (1). Lyon 18 weekly flights. Strasbourg 19 weekly flights in Europe. Amsterdam-Schiphol 28 weekly flights (2). Rome 14 weekly flights (1) in Algeria. Algiers 3 weekly flights in Tunisia. Tunis 8 weekly flights (1) Flights operated by Air Corsica (2) Flights operated by KLM Air France also operates an additional daily flight to Paris-CDG and two additional daily flights to Paris-Orly. Copenhaguen 2 Moscow 4 Amsterdam 28 Brest 7 Nantes 22 Bordeaux 24 Rennes 7 Lille 18 Paris-CDG 49 Paris- Orly 112 Lyon 18 Eindhoven 3 Dusseldorf 7 Strasbourg 19 Mulhouse 7 Milan 14 Prague 2 BEFORE 2 October destinations. 422 weekly flights AFTER 2 October destinations. 485 weekly flights Biarritz 2 Toulouse 12 Istanbul 4 Marseille 485 Rome 14 Bastia 26 Calvi 15 Athens 4 Algiers 5 Tunis 8 Ajaccio 25 Figari 20 Beirut 3 Casablanca 4 Existing flights New flights Weekly figures week beginning 2 October

5 Attractive, one-way fares Attractive, one-way fares On departure from the four regional cities, Air France offers very attractive one-way fares starting from 50 inc. tax. All tickets can be purchased as one-way fares online, by telephone, at Air France ticket offices or from a travel agent. Tickets may be changed for a fee and are not refundable. In order to provide its customers with the entire network of Air France-KLM flights from these cities, all tickets can be combined with connecting flights via Paris-CDG, Lyon and Amsterdam. Convenient services by booking on By booking and purchasing their ticket on or on the mobile site ( customers are automatically checked in and immediately receive their boarding pass by or on their mobile phone. This service allows passengers travelling without baggage to proceed directly to the boarding lounge. The reservation features have been optimized to ensure easy access to the lowest fares. Moreover, customers can store their selected flight and fare for one or more days before confirming their purchase. This time to think option costs 10 per passenger. For example: If a customer buys a return Marseille-Prague ticket. On the outbound flight, he can take a direct flight from Marseille to Prague and on the way back, he can choose a trip with a connection via Paris- CDG depening on the flight schedules. For customers traveling on business, Air France also offers a fully flexible fare, which can be combined with connecting flights via one of the group s hubs. With Flying Blue, I can earn and use miles on all Air France flights* Flying Blue miles can be earned on all flights. Customers will also be able to use their miles for these flights. Europe s leading frequent flyer programme, Flying Blue, has 19 million members and combines 31 airlines and over 100 non-airline partners. It comprises four levels: Ivory, Silver, Gold and Platinum. *subject to availability and programme terms and conditions 5

6 The Air France product, highly praised by passengers on board The Air France product, highly praised by passengers on board Flights will be operated by Airbus A319s (142 seats) and A320s (178 seats) in the Air France fleet. They will all be equipped with the new Air France seat, as on the La Navette shuttle and short-haul flights, and feature a single travel class. Comfort and space The seats offer a seat pitch of 31 to 32 inches (77.5cm to 80cm) and a comfortable seatback with a natural 15 recline. Removable armrests, a tray table and a cup holder further enhance customers comfort on board. Weighing just 9.1 kg, i.e. just 5.4 kg lighter than a conventional seat, the new shorthaul seat is 40% lighter and contributes to reducing CO 2 emissions. All the Air France services These new flights offer the full range of Air France services included in the ticket fare and highly appreciated by its customers: A snack and free beverage on all flights:. for flights under 1:40 hours (France and Europe), hot drinks and pastries are served in the morning, as well as refreshments and a selection of sweet and savoury biscuits on other flights throughout the day.. for flights between 1:40 hours and 2:30 hours (Europe and the Mediterranean), pastries are served in the morning, a sandwich at meal times and a selection of sweet and savoury biscuits on other flights throughout the day.. for flights between 2:30 hours and 3 hours (e.g., to Athens), a breakfast tray is served in the morning, a cold meal at meal times and a sandwich is served at other times.. for flights over 3 hours (e.g., to Moscow or Beirut), a breakfast tray is served in the morning, and a cold meal accompanied by a selection of biscuits is available at other times. A selection of French and international newspapers and magazines is available free of charge prior to boarding. Free transport of one item of hold baggage and one carry-on bag. Each passenger can check in one item of hold baggage weighing no more than 23kg at no extra charge. Elite and Elite Plus customers can also check in an additional bag weighing a maximum of 23 kg free of charge. Passengers travelling with Air France are also entitled to carry one item of hand baggage whose weight does not exceed 12kg aboard, a protective clothing cover plus an accessory such as a handbag, laptop, or camera. Check in and indicate your seating preference online on the internet or by mobile phone from 30 hours before your scheduled flight time. Customers can thus obtain their boarding pass in paper format, by or on their mobile phone prior to leaving for the airport. They can also check in using a self-service kiosk at the airport, depending on their destination. Staff available to provide assistance at every stage of your trip From arriving at the airport through to boarding, Air France staff are on hand at the airport to answer customers questions and provide assistance. Customers also have access to the network of Air France ticket offices throughout France and Europe. Payment by credit card at no extra charge. 6

7 The Air France product, highly praised by passengers on board The latest technologies for the benefit of customers Air France Connect, a free, proactive information service. When booking their flight, customers will benefit from Air France Connect, a new exclusive free service, without subscription or membership, which informs them of changes or irregularities concerning their trip. On all its flights, Air France offers personalized services for:. passengers with reduced mobility Air France offers the Saphir service, ensuring reduced mobility passengers receive the assistance they need to travel under optimum conditions. In this way, customers enjoy greater autonomy and comfort, while travelling in total safety. These services are available from the moment they set off to the moment they arrive. On board, the aircraft are equipped with a wheelchair. The seats are fitted with armrests that can be raised, facilitating access for disabled passengers and making for smoother boarding and disembarkation.. children travelling alone On flights within Metropolitan France and the French Overseas Departments, children can travel alone from the age of 4 (5 on international flights). Air France offers a UM service which looks after children from the beginning to the end of the trip, available for children up to the age of 12 on domestic flights and 14 on international flights. At the parents request, this service is also available for young passengers from 12 up to the age of 18 on domestic flights, and for young people from 15 up to the age of 18 on international flights. Every year, Air France carries close to 400,000 children who travel alone to join their family and friends in France and abroad, including over 300,000 for the domestic network alone. To ensure they can be contacted personally in case of a flight change, customers must make sure that Air France has a reliable way of contacting them by providing the maximum number of contact details (telephone, mobile or ) which they will be consulting during their trip. This information may be included when booking, either through a call centre, an Air France ticket office, a travel agent, a website or under the Manage your bookings section on a mobile internet site ( airfrance.com) and applications allowing customers, among other things, to purchase tickets and manage their reservations directly from their mobile phone. 7