JOINT VENTURE TRANSATLANTIQUE TRANSATLANTIC JOINT VENTURE

Transcription

1 JOINT VENTURE TRANSATLANTIQUE TRANSATLANTIC JOINT VENTURE 20 mai 2009 / 20 May 2009

2 NEW TRANS-ATLANTIC JOINT VENTURE A very broad network... operations, revenues and costs are equally shared between the AIR FRANCE KLM group and DELTA on all trans-atlantic flights between these countries the AIR FRANCE KLM group and DELTA share the profits on all trans-atlantic flights to and from these countries

3 ...organized around powerful hubs... Amsterdam Minneapolis Detroit Salt Lake City New-York JFK Cincinnati Memphis Atlanta Paris CDG Lyon

4 ...providing access to many Air France and KLM destinations...

5 ...and to Delta s.

6 The North Atlantic is AMONG the largest long-haul WORLD MARKETS Pacific 16% North Atlantic Pacific Europe-Asia Pacific 27% 16% 20% Europe-Middle East 5% Mid & South Atlantic Middle East-Asia Pacific 7% North America- 7% Europe-Africa South & Central America 5% 8% 20% World traffic (RPK) shares of inter-regional traffic flows (all carriers) (Source: IATA, Excludes intra-regional flows ; flows below 3% of global traffic not shown)

7 A FEW DEFINITIONS The Open Skies Agreement between the European Union and the United States Open Skies agreements go a long way in deregulating international air transport for both passengers and cargo between the European Union and the signatory third country. The main principles embodied in these agreements are: - the possibility for European and U.S. carriers to operate the routes of their choice between the signatory countries and beyond; - the freedom for carriers to implement the capacity and flight frequencies they wish; - the freedom to set fares; - all the airlines of the States signing the agreement will eventually operate in the most harmonized conditions as possible. For Europe, it was the European Commission, mandated by the European Council of Ministers of Transport, who negotiated the Open Skies agreement with the U.S. Administration. The agreement became effective on 1st April Antitrust Immunity Antitrust Immunity (ATI) granted to airlines permits them to coordinate their commercial activity, their fare policies and their capacity on departure from the USA both for passenger and cargo operations, and to harmonize their frequent flyer policies. After approval from the federal Department of Justice (DoJ), the U.S. Department of Transport (DOT) grants antitrust immunity to airlines that request it. Antitrust immunity is awarded if the authorities consider that the partnership envisaged by the carriers provides unquestionable benefits for consumers, without hampering competition. Air France, Alitalia, Czech Airlines, Korean Air et Delta obtained antitrust immunity for their services to and from the USA in Air France, Alitalia, Czech Airlines, Delta, KLM and Northwest obtained antitrust immunity for their trans-atlantic routes on 22 May Joint Venture Even though a joint venture (JV) does not correspond to a specific structure under French law, it refers to a type of association between two or more companies, set up for a predetermined objective. Generally speaking, there are two types of joint ventures: equity and contractual transactions. The one signed by Air France, KLM and Delta Air Lines on 20 May 2009 is of a contractual nature. This association implies a partnership and therefore a sharing of tasks, costs and revenues with no equity stake. Each of the airlines taking part in the JV takes the same risks, makes the same commitment and investments, with the common aim of optimizing revenues. Signed by all the partners, a JV is basically a contract which stipulates the fundamental rules for the partnership, its objectives, the resources to be used and the duration of the cooperation.

8 Pierre-Henri Gourgeon Chief Executive Officer of AIR FRANCE KLM Chief Executive Officer of AIR FRANCE Since 1 January 2009, Pierre-Henri Gourgeon has been Chief Executive Officer of both AIR FRANCE KLM and Air France. Born on 28 April 1946, Pierre-Henri Gourgeon graduated from the Paris Ecole Polytechnique and the Ecole Nationale Supérieure de l Aéronautique. He also holds a Master of Sciences from the California Institute of Technology in Pasadena. He trained and qualified as a fighter pilot at the French Air Force Academy of Salon-de-Provence and at Tours, From 1971 to 1981, Pierre-Henri Gourgeon held several engineering posts at the Ministry of Defence in the Saclay Propulsion Test Centre, aeronautical technical and production departments and surveys and assessment centre. He became a member of the Prime Minister s staff in June 1981 and, in 1984, Special Technical Advisor for major French corporations to Michel Delebarre, Minister of Labour and Vocational Training. From 1985 to 1988, Pierre-Henri Gourgeon was Vice President in charge of military programs at SNECMA. In 1988, he was appointed Special Advisor to Michel Delebarre, Minister of Transport, Equipment and Housing. Pierre-Henri Gourgeon took over as Director General of the French Civil Aviation Authorities from 1990 to He joined the Air France Group in 1993 as Chairman and CEO of the airline catering subsidiary Servair and other businesses within the Servair Group. He was then appointed Chairman and CEO of Esterel and Amadeus France (electronic distribution) in June 1996, Chairman of the Board of Amadeus International in September 1997, and finally Executive Vice President for Corporate Development and International Affairs for Air France in December Pierre-Henri Gourgeon was appointed Chief Operating Officer of Air France on 2 April 1998 and Deputy CEO of AIR FRANCE KLM on 24 June He and sits on the Board of Directors of Amadeus Global Travel Distribution and at the Board of Directors of Steria. Mr. Gourgeon is an Ingénieur Général de l Armement.

9 Richard H. Anderson Chief Executive Officer of DELTA AIR LINES, INC. Richard H. Anderson, 54, became Chief Executive Officer of Delta Air Lines on Sept. 1, 2007 after serving as a member of the Board of Directors since April In 2008, Anderson directed the company s efforts to merge with Northwest Airlines, creating the world s largest airline. Many significant milestones have been achieved in the areas of technology, operations, employee integration, finance and culture. All aspects of the merger are on plan to be completed by Anderson has over 20 years of aviation experience. He entered the industry in 1987 at Continental Airlines, where he ultimately served as staff vice president and deputy general counsel. In 1990, Anderson began a 14-year career at Northwest Airlines where he served as vice president and deputy general counsel; senior vice president of Technical Operations and Airport Affairs; executive vice president and chief operating officer; and from 2001 to 2004, as chief executive officer. Prior to joining Delta, Anderson was executive vice president of UnitedHealth Group and served as president of UnitedHealth s Commercial Markets Group. He also serves as a director of Cargill Inc. and Medtronic Inc. A native of Galveston, Texas, Anderson holds a bachelor s degree from the University of Houston and a Juris Doctor degree from South Texas College of Law. He and his wife, Susan, live in Atlanta.

10 Edward Bastian President Delta Air Lines Edward Bastian is president of Delta Air Lines. He also currently serves as head of Northwest Airlines, a wholly owned subsidiary of Delta Air Lines, Inc. As president, Ed and his team oversee and coordinate the company s strategy from network planning and revenue management to sales, marketing and business development. Currently, he is also serving as head of the Northwest operation as the companies work to fully integrate the two airlines. Bastian previously served as the chief financial officer, which included leading Delta through one of the largest and most successful Chapter 11 restructuring cases in U.S. history. Bastian joined Delta in October 1998 as vice president and controller and has served in various roles at the company, leading to his appointment as president in Bastian previously worked for PepsiCo and Frito-Lay, and was a partner with PriceWaterhouse in NYC. A 1979 graduate of St. Bonaventure University with a BBA, Bastian currently serves on the International Board of Directors of Habitat for Humanity and the Woodruff Arts Center in Atlanta. Bastian lives in the Atlanta area with his wife, Anna, and their four children.

11 Peter F. Hartman President and CEO of KLM Peter Hartman was born in 1949 in Curacao, the Netherlands Antilles. After graduating from high school in 1967, he studied mechanical engineering at Amsterdam Polytechnic, followed by business economics at Erasmus University in Rotterdam, where he received his master s degree. Mr. Hartman joined KLM on October 29, 1973 as an employment analyst for the Controller s Department at Engineering & Maintenance (E&M). He was appointed Controller Third-Party Work at E&M in In the years that followed he held various positions as controller in the Netherlands and abroad. In 1984, Mr. Hartman was appointed Managing Director Technical Contract Services and in 1987 he was appointed Project Manager, Schiphol On January 1, 1989, he became Vice President KLM Ground Services, Schiphol. In this capacity he was responsible for all handling processes at Schiphol and at all outstations in KLM s route network. Mr. Hartman became Senior Vice President Customer Services on October 1, 1990, and in April 1994, he was appointed Executive Vice President Personnel & Organization. On January 1, 1996, Mr. Hartman took up the post of Executive Vice President E&M, followed by his appointment on August 6, 1997 to the KLM Board of Managing Directors. Mr. Hartman also served as Deputy CEO. Mr. Hartman was appointed KLM President & CEO on April 1, Mr. Hartman is also a member of the following organizations: - the Supervisory Board of Kenya Airways Group - the Supervisory Board of Stork n.v. - the Advisory Board of Made in Scotland - the Advisory Board of the University Fund Delft - the Advisory Board of the Netherlands Agency for Aerospace Programs - the National Aerospace Laboratory (NLR) Foundation Board - the Netherlands Board of Tourism and Conventions Supervisory Board - the Dutch Dakota Association Recommending Committee - the Royal Netherlands Navy Brass Band Recommending Committee - Advisory Council for Historical Flights of the Royal NetherlandsAir Force - Committee of Recommendation of Stichting Hoogvliegers - Committee of Recommendation of the National Congress of Management and Policy of Science

12 Photo available on