THE PARIS-CDG2 HUB : A STRATEGIC ASSET FOR AIR FRANCE

Transcription

1 THE PARIS-CDG2 HUB : A STRATEGIC ASSET FOR AIR FRANCE ROISSY SEPTEMBER 2005

2 I/ NEW DEVELOPMENTS AND OUTLOOK II/ AN EFFICIENT TOOL FOR THE BENEFIT OF AIR FRANCE CUSTOMERS The services we offer our customers Who are our connecting passengers? Services offered to connecting passengers Terminals Transfers from Charles de Gaulle Airport to Paris and Orly The Cargo Hub III/ A DAILY CHALLENGE: 800 FLIGHTS PER DAY Teams On-time performance The Hub Control Centre Paris Airports Authority: a privileged partner of partners at Paris-Charles de Gaulle 2 The fleet Environmental protection APPENDIX Key Hub figures (2005) Record days at the Paris-CDG2 Hub -KLM key figures ( FY) 1

3 I/ NEW DEVELOPMENTS AND OUTLOOK 1. New developments at the Hub A. What is a «hub»? B. Paris-Charles de Gaulle 2 Hub: one of s key assets C. Rapid growth of the Hub 2. Outlook for the Hub A. Paris-Charles de Gaulle is one of the few European airports with development potential. B. The combined Paris-Charles de Gaulle-2 and Amsterdam-Schiphol hubs, the -KLM Group s key asset 2

4 1. New Developments at the Hub A. What exactly is a hub? A hub, literally the point where a wheel s spokes converge, is an organizational model for air transport, enabling passengers from all over the world to travel from one point on the planet to another via a single transit airport. This organization of traffic around a geographic centre avoids the need for point-topoint services between regional cities, where there are relatively few intercontinental passengers, as all routes converge at a single airport. A hub enables an airline to build a more efficient network, and at the same time generates economies of scale by concentrating resources (more cost-effective deployment of aircraft and greater return on investments). B. Paris-Charles de Gaulle 2 Hub: one of s key assets set up its Hub at Paris-Charles de Gaulle 2 in April The Paris-CDG2 Hub is one of s key assets. It enables the airline to attract medium-haul/long-haul connecting traffic via Paris. The flights are organized in 6 connecting banks (or timespans), each of which consists of a wave of flight arrivals and departures. The aim is to offer passengers a maximum number of connections in as short a time as possible. Today 75% of long-haul flights leaving Europe are concentrated in 10 major airports, and over 54% at 4 of them: London, Frankfurt, Amsterdam and Paris-CDG. Today, there are many places which can only be reached by air if you change aircraft at least once. To go from Marseille to Johannesburg, from Hanover to San Francisco, from Lisbon to Tokyo or from Venice to New York, the passenger must choose whether to transit in London, Frankfurt, Amsterdam or Paris. By combining medium-haul traffic flows to feed a particular long-haul flight, you increase the number of connecting possibilities between two points (markets served), while limiting the total number of flights. 3

5 NUMBER OF MARKETS SERVED NEW YORK PARIS VENICE 3 MARKETS NEW YORK PARIS 1 2 NEW YORK SAO PAULO MARKETS NEW YORK MARKETS 20 The importance of a powerful hub is particularly evident on the domestic network. If the connections handled at Paris-CDG2 were organized at other airports, then the French regional airports would only receive 1/25 th of connecting passengers, as passengers would instead use other European hubs. Furthermore, the hub becomes a key asset in market downturns. For example, the suspension of direct routes by some of our competitors which started before the 9/11 events has led to many passengers taking connecting flights, particularly on Air France. By building its Hub at Paris-Charles de Gaulle 2, has been able to compete more favourably with its main European rivals. In summer 2005, was able to offer customers over 17,900 possible connections a week both ways between the medium-haul and long-haul networks, with a minimum connecting time of less than two hours. This is more than Frankfurt, Amsterdam or Heathrow can offer. Thanks to this performance, flights appear on the first page in Amadeus, the global reservations system used by the travel industry to make their customers bookings. 80% of these sales are made on flights which appear on the first page. 4

6 Available weekly connections both ways in less than 2 hours (summer 2005) AFR DLH BAW KLM AFR = /Paris-CDG2 DLH = Lufthansa/Frankfurt KLM = KLM/Amsterdam BAW = British Airways/London-Heathrow 5

7 Franchises and leases Developing franchise operations has enabled to ensure service under its own colours on less frequently travelled routes and to develop new routes for which the airline does not have the appropriate planes. This activity is strategic for, as it allows it to: Feed traffic to hubs, notably its Paris-Charles de Gaulle 2 and Lyon Hubs. Leverage the responsiveness of these airlines to meet market demand on a competitive basis. Every day, 76 flights operated by 3 franchisees feed the Paris-Charles de Gaulle 2 Hub. Brit Air: Limoges, Rennes, Bilbao, Genoa, Newcastle, Southampton, Régional: Aberdeen, Bremen, Hanover, Ljubljana, Mulhouse-Basel, Nuremberg, Vigo, City Jet: Birmingham, Dublin, Florence, London City, Edinburgh, Gothenburg, Zurich There are also 28 daily flights operated under long-term leases under colours: Brit Air: Brest, Pisa, Régional: Brest, Clermont-Ferrand, Lyon, Pau, Bologna, Frankfurt, Hamburg, Manchester, Munich, Stuttgart, Verona, Airlinair: Eindhoven, Aéroservices: Malabo, Pointe Noire (Dedicate service). 6

8 Connections made easy with the TGV and Thalys high-speed trains also benefits from air/rail connecting traffic thanks to the location of the TGV station at the heart of its Paris-Charles de Gaulle Hub (between terminals 2C- 2D and 2E-2F), providing an interconnected air/rail/express metro network. The completion of the TGV station in the centre of Paris-Charles de Gaulle Airport in 1994 immediately opened up prospects for intermodal development between rail and air travel. The signature in 1995 of a partnership agreement between and French Railways (SNCF) concerning the Lille-Europe sector has enabled both companies to offer fast connections between the Nord-Pas-de-Calais region and the rest of the world. Some 60,000 passengers per year use this service. Since November 1999, and the SNCF have added 5 major regional cities to their partnership for direct air/rail connections between France and abroad. These are Angers, Le Mans, Lyon Part-Dieu, Poitiers and Tours (Saint-Pierre-des-Corps). Nantes was also included late in Since June 2002, the service which checks passengers through to their final destination at Lille Europe has been extended to Lyon Part-Dieu and Tours-Saint- Pierre-des-Corps. Since January 2003, Nantes, Angers and Poitiers also benefit from this service. In addition, and Thalys International (TGV) have, since November 1999, offered an air/rail service on the Brussels-Paris/Charles de Gaulle route, with 4 daily services. Since March 2001, has entered a new phase in intermodal transport. It has replaced its flights for connecting passengers between Paris and Brussels by a Thalys high-speed train service. It now leases one or two first class carriages on the 5 daily train services. The air/rail partnership between the TGV, Thalys and the plane is yet another asset for, in terms of image, passenger convenience and sales performance. This new service which is both fast (75min journey time) and comfortable, enables passengers to benefit from excellent connecting opportunities at Paris-CDG2., SNCF and Thalys transported more than 200,000 air/rail passengers in

9 A powerful local market In addition to connecting traffic, chose to build its hub at the main airport of the Ile-de-France region, one of the richest and most visited areas in the world. This favourable geographic situation has enabled to develop a powerful point-to-point market (flights with no connections). Yearly point-to-point traffic (Paris = 100) ,5 36,7 28,1 20, = London-Heathrow 2 = Paris-CDG2 3 = Frankfurt-Main 4 = Amsterdam-Schiphol 5 = Munich-F.J.Strauss 6 = Zurich-Kloten 8

10 C. Rapid Growth Since it was set up in 1996, the Hub has tripled the number of available connections offered by at Paris-CDG2. Available long-haul/medium-haul connections in less than 2 hours Summer 95 Summer 96 Summer 97 Summer 98 Summer 99 Summer 00 Summer 01 Summer 02 Summer 03 Summer 04 Summer 05 During the same period, the number of daily connecting passengers has increased by over 178%. Today, over 52% of passengers arriving in Paris on are connecting with another flight. Number of connecting passengers per day* (IATA year: April-March average for each year)

11 Percentage of connecting passengers* (IATA year: April-March average for each year). 43% 48% 48% 50% 53% 56% 58% 52,70% 53% 52,90% * A depressed economical environment, the conflict in Iraq, the SARS epidemic and strikes by air traffic controllers contribute largely to explaining the lower figures in In only 9 years ( ), the number of daily flights has almost doubled. Number of flights per day* (IATA year: April-March average for each year)

12 ... this has boosted the airline s capacity as well as the number of passengers (+96%) : Total number of passengers per day* (IATA year: April-March average for each year.) * A depressed economical environment, the conflict in Iraq, the SARS epidemic and strikes by air traffic controllers contribute largely to explaining the lower figures in

13 2. Outlook for the Hub A. Paris-Charles de Gaulle is one of the few European airports with development potential. This development potential is rare in Europe. The other major airports are saturated and can only be extended with difficulty. Following several years of strong growth and the implementation of new infrastructures, the development of the Hub is a large-scale project, with new terminals and a new baggage-sorting system. Developing infrastructures at Paris-Charles de Gaulle 2 will enable the airline to exploit the 3 key assets offered by a hub: a maximum number of aircraft parked onstand, quick and efficient connecting opportunities for passengers, and a fullyintegrated and modular baggage-sorting system. These infrastructures will complement the project to extend to the East of Paris-Charles de Gaulle 2 over the coming years, more specifically: - the delivery in April 2007 of the S3 complex, with a flexible handling capacity of between 11 long-haul and 8 medium-haul flights to 4 long-haul and 22 medium-haul flights simultaneously and at on-stand parking gates; - the re-opening of the terminal 2E jetway in summer 2008 (closed following the partial collapse of Terminal 2E on 23 May 2004); - the opening of terminal 2G for regional flights only in September 2008; - the implementation of an additional baggage-sorting system: a second fast baggage sorting system for handling short connections (less than 80 minutes) will be introduced in May 2006; followed by the implementation of the first phase of the TBE sorter in mid-september 2006, which will need to be implemented progressively to become fully operational by summer On the basis of this expansion work, intends to build a coherent network comprising terminals 2E, 2F and the S3 complex, geared towards making the handling of passengers and their baggage more efficient. This combined network will constitute the main hub, with a capacity to handle 84% of connecting traffic at Paris-CDG 2. These new infrastructures will allow: - to improve service quality significantly: starting in 2008, approximately 80% of flights will be handled at on-stand parking gates, compared with 48% in the summer of By this date, terminal 2E (T2E) will have recuperated all its parking gates following the disassembly of the temporary boarding area, opened in December 2004, and a second boarding area, satellite H, opened in June 2005; 12

14 - a reorganization of traffic: in 2008, following the re-opening of T2E and the implementation of the S3 complex, where the majority of long-haul flights will be handled, T2F will be dedicated to Schengen flights. B. The combined Paris-Charles de Gaulle 2 and Amsterdam-Schiphol hubs, the -KLM group s key assets -KLM s network is organized around two of Europe s leading hubs, Paris- CDG 2 and Amsterdam-Schiphol, allowing the Group to combine point-to-point travel with a large number of connecting opportunities/no of connecting possibilities between two points. The strong development potential offered by the two hubs has enabled -KLM to compete more favorably with saturated rival airports. The hub s development potential has allowed it to absorb additional traffic on connecting routes, related to the intercontinental market ( 5% per year over 10 years). During Summer 2005, the two hubs, offering 15 round-trips per day between Paris- CDG 2 and Amsterdam-Schiphol (8 flights and 7 KLM flights), served 234 destinations. Moreover, the number of available connections to French and Dutch regional cities was increased. Flight times were analyzed in order to increase connecting opportunities at the two hubs and over 92% of flights operated by both airlines were handled at on-stand parking gates. Furthermore, the implementation of identical customer handling procedures at both hubs, in addition to the introduction of collective operating guidelines will ensure an excellent level of service at both hubs. 13

15 II/ AN EFFICIENT TOOL FOR THE BENEFIT OF AIR FRANCE CUSTOMERS The services we offer our customers 1. Self-service chain 2. Reliable services 3. Services offered to all customers 4. Planète Bleue: a special service designed for families and children 5. Premium customers 6. Check-in at the Villepinte and Le Bourget Exhibition Centers 7. Services for customers with reduced mobility in need of special assistance 8. ticket offices Who are our connecting passengers? Services offered to connecting passengers 1. Passenger connections 2. Baggage transfers Terminals Transfers from Charles de Gaulle airport to Paris and Orly The Cargo hub 14

16 SERVICES OFFERED TO CUSTOMERS 1. The self-service chain Passengers changing expectations and needs are reshaping air travel. When the customer arrives at the airport, he or she expects more seamless services, greater independence and recognition and improved access to information. In offering the self-service chain, and the Targeting Passengers project in particular, Air France strives to satisfy its customers as closely as possible. Deployed progressively at all the Paris-CDG 2 terminals since June 2003, this project aims to take into consideration customers changing expectations ( the easy airport ), new business/function imperatives and the airline s cost control objectives. Fundamentally, the strategy is based on two new concepts: - customized processing of customers requests, whereby different types of customer are welcomed in dedicated areas: Premium (l Espace Première First Class and l Espace Affaires Business Class), Tempo, self-service kiosk areas with a drop-off zone. Check-in procedures are based on a particular group of customers, not per flight. - providing a privileged contact for the customer the Customer Service Sector, dealing with check-in, boarding, customer service desks, etc. The self-service chain is being developed alongside: - the roll-out of third-generation self-service kiosks for passengers with drop-off baggage, initiated on 1 June 2005 in terminal 2F1; - electronic ticketing; - since February 2005, the option for customers to check in online for an increasing number of flights out of Paris-CDG 2 (option available on all shorthaul and medium-haul flights). 2. Reliable services At Paris-Charles de Gaulle 2, as in the rest of the world, owes its customers reliable services. In September 2002, was the first airline to receive Service Certification for its Hub and in January 2005, SGS Qualicert delivered certification to the airline for its 38 commitments to its customers. The Paris-CDG2 Hub, like all other stations, details these 38 commitments through 170 service standards, for sales, check-in, lounges, boarding, arrivals and connections. 15

17 These service standards were implemented in They detail the staff s attitude, professional skills and precise components of the product, and are monitored in two ways: - firstly by "mystery customers" who are recruited from outside the airline, - secondly by the staff themselves when on duty through a system of bar codes which feed a data base in real time. Their comments are compiled in reports, which are followed up on an ongoing basis by unit heads. The rate of compliance is included in the hub s performance contract, and corrective action is taken when disparities in performance are identified. For the year , the global indicator for the hub showed a rate of compliance of 90%. The target for the hub and the entire Company is 93%. 3. Services offered to all customers ground staff are present in all terminals to direct and advise passengers. Their task is to actively seek whether passengers need help in finding their way, thereby making travel easier for them. Ground staff who speak in Hindi, Arabic, Indonesian, Thai, Japanese, Chinese, Korean, Latin American Spanish or Portuguese as their mother tongue as well as French and English, are responsible for providing assistance to foreign passengers departing from, arriving or in transit at Paris-CDG 2 who understand neither French nor English. Portuguese, Spanish, German, Macedonian, Russian, Croatian, Czech, Slovakian, Italian and Hebrew are also spoken at. 4. Planète Bleue, a special service designed for families and children The "Planète Bleue" service, designed for both accompanied and unaccompanied children, was introduced in August 1993 and is easily identifiable by its own logo. Special entertainment is organized in boarding and disembarkation areas during holiday periods. A recreation area is available for children in transit, with everything they need to keep them amused (TV, video, games etc.). provides a free service for children traveling alone, from 5 years up to their 12 th birthday on international flights, and from 4 years up on flights in continental France and to the French Overseas Departments. When they check-in, children travelling unaccompanied (known as "UM" unaccompanied minors) are given a pouch containing their travel documents and a "Planète Bleue" badge. The check-in agent also puts a special Planète Bleue sticker 16

18 on their baggage. ground staff then look after the children until they are handed over to the flight attendants. On arrival at their destination, they are once again looked after until they are met by authorized persons, and a check on identity is carried out. During school holidays more staff are taken on to take care of the 1,000 unaccompanied children (UMs) a day. 5. Premium customers Passengers travelling in the l'espace cabin as well frequent flyers from all the SkyTeam partners (Aeromexico, -KLM, Alitalia, Continental Airlines, CSA Czech Airlines, Delta Air Lines, Korean Air and Northwest Airlines) are given special treatment. On their arrival at the airport they check in at dedicated check-in counters. In the medium-haul 2B and 2D terminals, passengers travelling with hand baggage only can check in directly in the lounge. An exclusive, personalized service is available for passengers on official business and for certain commercially important customers. They are met at check-in or on arrival of their flight, accompanied to the lounge or to the aircraft, sometimes in a private car, and on arrival are accompanied to the baggage claim area. In Paris-Charles de Gaulle 2 alone, offers 10 private lounges to its premium passengers, accessible to l Espace cabin passengers and SkyTeam Elite Plus customers (Club 2000 or Flying Blue Platinum for -KLM, Club Premier Platino for Aeromexico, Freccia Alate for Alitalia, SkyMiles Platinum Medallion for Delta, Morning Calm Premium and Million Miler for Korean). lounges are divided up into four areas: A reception area with a range of immediately available services (baggage storage, coat closet, newspapers and magazines). A self-service bar and refreshments area. A business area equipped with phones, fax (payable service) (except terminal 2E and satellite H, not equipped with fax), PC, Internet, photocopying machines etc. An individual waiting area with armchairs, televisions and courtesy telephones (free for local calls). And a massage area (free AMMA massage) has been installed in the lounges in terminals 2C (departure lounge) and 2E (Monday to Friday). The lounge layout has been designed in such a way to as to optimize the flow of people and enhance their comfort. The wide choice of services on offer enables the 17

19 passenger to organize his time as he wishes. The latest service to be introduced is the Wi-Fi connection, payable by passengers. The soundproofing, air-conditioning, control and dimming of the lighting, different types of materials, and colour scheme, have been designed for each particular space, whether intended as a reception, eating or refreshments area. The aim of this choice of decor is to create a warm and comfortable atmosphere. Showers have been installed for customers use in the Business lounge in terminal 2C, and in the Business and First Class lounges in terminals 2E and 2F. An «arrivals» lounge was opened in January 2002 in terminal 2C. This landside lounge enables passengers travelling in l Espace, as well as members of Club 2000, Flying Blue Gold and Platinum and Delta s Business Elite passengers, to enjoy a continental breakfast, shower and freshening up of their garments on their arrival, before organizing their trip into Paris. The new lounge also has a relaxation area and a working area. It is open from 5 am to 2 pm. With the opening of this lounge, Air France can now offer a similar type of service to its main competitors (namely American Airlines, British Airways and Lufthansa), thus meeting strong demand from its customers. The l Espace Affaires Business lounge in terminal D was designed to give Air France s corporate customers on official business access to convenient services: reservations of flights operated by -KLM, SkyTeam partner airlines or other airlines, issuance of e-tickets, booking of hotel rooms and car hire along with visa requests and other specific requests. By providing customers personalized service and knowing how to satisfy their every need, ground staff are able to anticipate their requests: assignment of seats, special meals, assistance on connecting flights and recommendations all help to ensure optimum travel comfort. Travelers profiles and requirements are analyzed to tailor the frequent flyer offer to specific needs: -Flying Blue Card, - Voyageur Rewards contract, -Travel Saver Card for Continental France and French Overseas Department, - Amex and Premio charge cards. Once the company purchasing policy has been examined, along with its travel requirements, proposes contracts on the basis of fare agreements, in conjunction with monthly statistics and business spreadsheets. 18

20 Airline partners such as car rental companies or hotel chains offer loyalty cards that can be personalized according to the customer s requirements in these areas. Furthermore, s tourism sector offers tourism products designed by experienced, referenced travelers, and their expertise in group travel enables them to take care of travel arrangements for customers participating in conferences, associations, sports or cultural events. And finally, the excess baggage sector deals with the baggage transport of key account and partnership customers. 6. Check-in at the Villepinte and le Bourget Exhibition Centers Since 1996 has provided visitors and exhibitors at the Villepinte and Le Bourget trade fairs (exhibition centres located near Paris-Charles de Gaulle Airport) with the option of checking in on flights or those of other SkyTeam partner airlines and some customer airlines. Seven check-in desks have been specially installed in the reception hall and at the entrance to some of the exhibition halls. A sales and booking office is also available at the centre. This service attracts and retains business custom at trade fairs. It is also a considerable advantage in terms of service and image. Since the launch of this service, the number of passengers checking in at Villepinte and Le Bourget has risen to 140, Services offered to customers with reduced mobility in need of special assistance Every year welcomes nearly 300,000 passengers with special needs (disabled passengers, elderly persons requiring assistance, visually and hearing impaired persons), totaling several hundred per day. In this domain has developed a high standard of professional skills resulting in air travel now being the preferred means of transport for all passengers with impaired mobility. A certain number of special measures have been implemented to take care of these passengers: the use of a handling company, Passerelle based at Paris-CDG, and PMAIR based at Orly, providing wheelchairs and stretchers. passengers' own wheelchairs and guide dogs are carried in the hold and cabin respectively free of charge. was the first airline to launch in 2001 a free assistance service for disabled passengers, called SAPHIR*. Each member of the Saphir team has been trained by 19

21 a physician specialized in a particular disability (physical, mental or sensory disability), to be able to handle these passengers requests and specific needs. * SAPHIR (information and reservations service for passengers with special needs) is an Air France service available to passengers residing in continental France or the French overseas departments departing from continental France on an AF flight ( including codeshared flights) or departing from Fort-de-France, Pointe-à-Pitre, Cayenne or Réunion on an AF long-haul flight (excluding code-shared flights). can provide passengers residing aboard special assistance on booking, at the airport and when checking in, during the flight and upon arrival. Passengers who require this type of assistance should contact their local offices. Safety, comfort and friendliness are therefore 's constant priorities. It is of the utmost importance that customers requiring special assistance clearly notify Air France s «Saphir» service at least 48 hours in advance, so that the necessary measures can be taken to ensure appropriate service levels. Saphir, designed to make travel for disabled passengers as easy and simple as possible, includes: -a special telephone number which customers in continental France can use to obtain information and make reservations, and an address [email protected]; -a SAPHIR card, a personal, numbered card, free of charge and valid for five years. Cardholders reservation files are automatically fed with information on the customer s disability. It can also be used as identification for an electronic ticket; -details on the degree and type of the passenger s disability are entered in a database: staff are able to provide more suitable assistance, more quickly to the passenger -reduced rates for passengers with special needs and their accompanying persons; 10% discount on optional transfer in an appropriate vehicle (transport form passenger s home to airport); -check-in and transportation of packaged wheelchair in the hold. 8. ticket offices Seven ticket offices are open to customers at Paris-Charles de Gaulle 2 every day and one at CDG1. Terminal 2A (exit 5): from 7.00 a.m. to 1.30 p.m. and from 8.00 p.m. to p.m. Terminal 2B (exit 4): from 6.00 a.m. to 9 p.m. Terminal 2C (exit 5): from 5.45 a.m. to p.m. Terminal 2D (exit 4): from 5.30 a.m. to 9 p.m. Terminal 2F1 (exit 7): from 5.30 a.m. to 9 p.m. Terminal 2F2 (exit 12): from 5.45 a.m. to 11 p.m. Terminal 2E (exit 2.06): from 7.00 a.m. to 6 p.m. CDG 1 (exit 14): from 7 a.m. to p.m. (except Thursdays: from 7 a.m. to 9 p.m.) 20

22 WHO ARE OUR CONNECTING PASSENGERS? conducts regular surveys of its customers to obtain an exact idea of the different categories of passengers the Company carries on its routes. The results of these surveys enable to validate its choices from commercial and strategic standpoints. The socio-economic characteristics of the 24,000 customers transiting daily via the Hub in Paris-Charles de Gaulle 2 highlight airline s significant presence among European and international customers. Socio-professional categories Other Professions 22% Not employed 14% Company Directors 16% Self-employed Directors 15% Executives, Engineers, Teachers 33% Countries of residence Americas 24% Asia 7% France 24% Africa / Middle East 5% Europe 40% 21

23 SERVICES OFFERED TO CONNECTING PASSENGERS At Paris-Charles de Gaulle 2 everything is done to speed up transfers between short, medium and long-haul flights. Customers and their baggage may board their connecting flight in as little as 45 minutes. There are an average of 800 departures and arrivals per day in 6 connecting banks, making a total of one aircraft movement every 2 minutes. This means that handles an average of nearly 53% connecting passengers (more than 23,000 customers and 28,000 items of baggage) a day at Paris-CDG2. 1. Passenger Connections A transfer desk is located in each terminal to provide customers with assistance, particularly when their flight has arrived late and they have missed their connecting flight. staff members are there to help passengers get from one terminal to another. Airside and landside shuttle buses run continuously, enabling passengers to reach their departure terminal in only 15 minutes. Passengers can also go on foot. staff in charge of short transits meet the passengers off the plane and accompany them quickly to the aircraft. The SNCF railway station at Paris-Charles de Gaulle 2, located in the centre of the hub, also offers air/rail connections with the TGV high-speed train. The agreements recently signed by, SNCF and Thalys facilitate and multiply air/rail connections. The Petroleum Club The Petroleum Club is an and KLM frequent flyer product, and meets the specific needs of a particular group of customers: gas and oil industry professionals. and KLM s aim is to be the privileged carrier of these customers, who represent an important economic asset as they travel frequently and at high fares. The Petroleum Club is a vital tool for attracting oil and gas industry professionals. It currently has 20,000 members. -KLM serves the majority of the world s major offshore and onshore oil and gas production sites thanks to a large network of «oil» routes to Africa, the Middle East, America, Europe and Asia. 22

24 Petroleum Club members benefit from priority services, especially those who are connecting with or KLM flights at Paris-CDG2 and Amsterdam-Schiphol, where a range of exclusive services are available. Moreover, special services reserved for Petroleum Club members are available at all gas and oil destinations. Membership criteria for the Petroleum Club: Membership is free, subject to certain conditions: The passenger must be over 18. They must be a member of -KLM s Flying Blue programme (free membership) or must accept to become a member by joining the Petroleum Club. They must work for an oil or gas business company listed by and/or KLM. They must make at least one round trip a year on long-haul or two round-trips a year on medium-haul on one of the and/or KLM oil routes. To become a member, the customer must fill in a Petroleum Club application form. Once their membership has been accepted, they will receive a personal membership card (number identical to the Flying Blue card number) within about a month. Petroleum Club benefits at the airport: Priority check-in at: - the main oil route destinations, at dedicated Petroleum Club desks; - Paris-CDG2, at Premium counters (Terminal 2C Area 3, Terminal 2F Area 11 and Terminal 2E Area 5); - other destinations worldwide, at l Espace Affaires Business check-in desks; - KLM oil destinations (Kuwait, Dammam, Atrau, Stavanger, Lagos, Malabo and Tripoli) and at Amsterdam-Schiphol Business Class check-in counters. Priority access to Premium Transfer desks. 23

25 Exclusive benefits for Petroleum Club members at Paris-CDG and Amsterdam- Schiphol All Petroleum Club members are entitled to the following benefits: -access to the Petroleum Club lounge at the Sofitel Hotel (use of showers, refreshments at the bar, cable TV, modem connection, international press, relaxation area, etc.); -access to the KLM Crown Lounge, at Schiphol Petroleum Club passengers with transit time between two and/or KLM flights: less than 3 hours: the Petroleum Club offers its members a drink; between 3 and 6 hours, a meal is served in one of our partners restaurants; more than 6 hours, an additional meal is served (along with a day-use hotel room at a four-star hotel at Paris-CDG). Benefits for Petroleum Club members at the airport: Meals and refreshments are offered in exchange for Petroleum Club Service (PCS) vouchers, which are given to customers on presentation of their Petroleum Club card and their flight coupon: o at Paris-CDG, at the transfer desks, o at Schiphol, at the KLM Crown Lounge and at transfer desks, o elsewhere in the world at check-in desks in Abidjan, Buenos Aires, Caracas, Douala, Dubai, Houston, Johannesburg, Lagos, Cairo, Libreville, Luanda, Port-Harcourt, Rio de Janeiro and Singapore. Check-in at dedicated Petroleum Club desks and at Premium counters on presentation of the Petroleum Club card. Other Petroleum Club benefits: The Petroleum Club also offers the exclusive services of our partners: Special rates and services with selected hotels: Accor. Sofitel (Atrium Budapest, Copenhagen, Houston, Paris and Rio de Janeiro). 24

26 Novotel (Century Hong Kong, Moscow downtown and airport, Shanghai Atlantis). Méridien (Amman, Brazzaville, Damascus, Douala, Dubai, Lagos, Cairo, Libreville, Luanda, N djamena and Port Harcourt). Exclusive Hertz benefits. Geolink offers special rates for the purchase or rental of a satellite mobile phone The Petroleum Club has a real club spirit! The Petroleum Club organizes golf and tennis tournaments at certain destinations. The Petroleum Club newsletter is published three times a year and contains: practical travel information; description of new benefits; our partners services; special themed articles ( wine, country, etc.); information on sports events in the oil destinations. Members can choose from a range of Petroleum Club designer label items available in the Sofitel Roissy hotel lobby. 2. Baggage Transfer 28,000 items of connecting baggage, including 20% with very short connections, are handled daily at the Paris Charles-de-Gaulle 2 Hub. This baggage, for which the connection time is limited to a maximum of 80 minutes, is sorted and secured in dedicated facilities before being loaded onto the aircraft. Traffic growth and increased connections at Paris-Charles de Gaulle 2 have been decisive factors in the construction of an automated, mechanized baggage sorting system providing optimum reliability and security. This is the «TBM» sorting machine (located between terminal 2C and the TGV high-speed station), which began operating in The construction of this system was supervised by Air France in partnership with the Paris Airports Authority. 25

27 The sorting system consists of 15 kilometers of conveyor belts with gates equipped with optic laser scanners as well as a storage area capable of holding up to 2,500 pieces of transit baggage for over 3 hours. In March 1999, the new TBF sorter (temporary) was installed by the Paris Airports Authority and. This is a semi-automatic sorter mainly intended for containerized baggage. It can handle up to 3,500 pieces of baggage per hour. Its impressive size (twice the size of a football pitch) allows it to absorb the growing traffic. In 2004, a fast baggage sorting system, the TBR Nord was introduced. This system is intended to sort baggage on very short connections, as it can handle up to 1,600 pieces of baggage per year. In May 2006, the TBR Sud, complementing the TBR Nord system, will be introduced. At the end of 2006, the first phase of the implementation of the new giant sorting system, TBE, will be complete. It will complement the current TBM system and will comprise several sorting units linked to terminals 2E and 2F. This system will ensure automatic security checks of all hold baggage. is also phasing in the new "SRB" (baggage reconciliation system). This system, based on bar codes and laser scanning, enables us to ensure, in real time (while the baggage is being loaded) the security and quality of baggage handling through compliance with security regulations. The baggage call center, which at the time of its launch in June 2001 only handled passengers arriving at Paris-CDG2, today covers all French stations. Overall, the call center s accessibility rate* is today in line with the fixed performance target of 90%. It should also be noted that it has conserved a satisfactory rate of close to 80%, even with poor operational conditions such as in January 2003 when there was heavy snowfall. On a practical note, the baggage call center has, since June 2002, been given a tollfree number dedicated to baggage incidents. By calling , passengers have access to a service which enables them to recuperate their baggage faster. This call center, which is managed by a team of specially trained professionals, is a great help to s other passenger service departments and enables the Company to provide passengers who have suffered baggage incidents with simple and rapid solutions. * percentage of calls received which are handled. 26

28 TERMINALS The Paris-Charles de Gaulle 2 terminals group flights and those of the SkyTeam member airlines, depending on their destination. Long-haul flights are grouped in terminals 2A, 2C, 2E and 2F International. Medium-haul flights are spread over the following terminals: - 2B, 2D and 2F Schengen for flights to countries within the "Schengen" area, including domestic flights, - 2B, 2C, 2E and 2F International for other international flights. Dates when the terminals were opened: terminal 2B: 1981 terminal 2A: 1982 terminal 2D: 1989 terminal 2C: 1993 terminal 2F: 1998 (west wing) and 1999 (east wing) terminal 2E: first part opened in June 2003 The design of the first four terminals favoured local customers with short distances between road transport (car, bus) and aircraft. This has been a handicap for the operational organization of the hub. To make up for these shortcomings, is constantly adapting the available airport resources. Thus terminal 2F and terminal 2E (partially opened in June 2003), are better suited to meeting hub requirements. Both these terminals are the first stage in the implementation of an airport system aimed at optimizing transit passenger and baggage handling. This strategy involves concentrating the greatest transit passenger flows with the shortest connecting times around the most efficient passengers circuits. 27

29 Terminal 2E Terminal 2E, a major contributor to the development of terminal 2 at Paris-Charles de Gaulle, was built and financed by Aéroports de Paris. The first part (west wing) welcomed our SkyTeam alliance partners and their customers as from June 25, Terminal 2E is made up of three main sections: - the main concourse comprising the departures hall, check-in areas and the baggage claim area, - the central concourse where the police and security checkpoints and the operations offices are located, - the boarding pier. The boarding pier has been closed since the collapse of part of the roof on 23 May 2004, resulting in the loss of 10 gate parking stands for the simultaneous handling of 9 long-haul aircraft and 1 medium-haul aircraft as well as five additional boarding gates available for aircraft parked off-stand. The opening of the New Boarding Lounge in terminal 2E on 15 December 2004 (equipped with 6 gates), followed by Satellite H on 15 June 2005 (also 6 gates) have allowed to recover the former flight handling capacity of the boarding pier at T2E. Terminal T2E should be operational again as of summer

30 TRANSFERS FROM CHARLES DE GAULLE AIRPORT TO PARIS AND ORLY coaches provide a regular service to Paris and Orly Airport from Paris- Charles de Gaulle Airport, in comfortable, air-conditioned vehicles equipped with video. To Paris: Route n 2: CDG/ Porte Maillot/ Place de l'etoile scheduled service, from 5.50 a.m. to 11 p.m. Route n 4: CDG/Gare de Lyon/Gare de Montparnasse. scheduled service from 7 a.m. to 9 p.m. To Orly Airport: Route n 3 : CDG/Orly West/ Orly South - scheduled service from 6 am to pm Tickets may be purchased on board the coaches, from the sales points located in each terminal, or from any ticket office. An Audiotel number gives information in five languages on s scheduled coach services (routes, rates and times): (0.34 euros per minute). It is also possible to consult the coaches website, on Other means of transport - taxi, bus or train - are also available. 29

31 THE AIR FRANCE CARGO HUB Cargo-KLM Cargo, the world s leading international cargo carrier, is a member of the SkyTeam Cargo Alliance, launched on 28 September 2000, grouping Aeromexico, Alitalia, CSA, Delta, Korean Air and Northwest. For the 2004/2005 fiscal year, Cargo-KLM Cargo carried 10.2 bn RTK (revenue tonne-kilometres) for operating revenues of 2.6 billion euros, representing almost 14% of the Company s total revenues. Infrastructure: Cargo has several ground facilities to be able to handle all its freight (over 1 million tonnes of freight in fiscal ): mainly at Paris-Charles de Gaulle airport at the G1XL cargo hub, which was modernized and expanded in 1998, and its perishables station, or the Express Hub at cargo terminal n 2. also in Europe, where Cargo operates three trucking hubs at Malmö (Sweden), Hahn (Germany) and Milan (Italy). Recognized as one of Europe s largest cargo hubs, with a surface area of 123,000 sq.m, G1XL benefits from modern technology which increases operating productivity, measured in tonnage handled per employee, while reducing transit time and the unit costs of ground handling. The small parcel stocker, the electronic labelling of containers and the computerized logistics system make this one of the most modern cargo hubs. 85% of pallets are handled automatically. With a nominal capacity of 1.4 million tonnes per year, the G1XL terminal is a true converging point for the Company s world cargo network, as almost 75% of freight traffic transits at Paris-Charles de Gaulle before being sent on to its final destination. Thanks to the expansion work underway over the past few years, an additional handling capacity of 40% has been generated along with 15% additional surface area. Similarly, all express freight operations and postal traffic are today handled at cargo terminal n 2 (also known as Sodexi) at Charles de Gaulle Airport. Completely renovated, the express hub ensures the integration and perfect control of the different processes. With a surface area of 14,000 sq.m., 11,000 sq.m. of which is used for express parcel handling and 3,000 sq.m. for customers premises, this centre is equipped with a small parcel sorting machine using the latest techniques. It can handle 6,000 parcels an hour. 30

32 Each parcel or sack which enters the express hub is identified by a barcode label indicating the weight, destination, air waybill number and number of parcels involved. Customs officers are present 24 hours a day inside the express hub. X-ray machines guarantee shipment security. As part of the logistical reorganization around the cargo hub, the perishables station was opened on 1 st March 1999 at Paris-Charles de Gaulle. The transportation and handling of this kind of merchandise is subject to strict national, European and international regulations. The location of this station close to the Cargo hub complies with these regulations, and its design and construction takes into account all current hygiene standards. For example, different storage areas have been installed to meet the specific requirements of certain merchandise (meat, seafood, fruit, vegetables, flowers). The cold chain is adapted to preservation and hygiene conditions relative to each type of product. Over 40,000 tonnes of perishables transit each year through this station, 70% of which is fruit, vegetables and flowers, 20% seafood and 10% meat. These important logistic resources are supplemented by a large network of sales agencies which represent Cargo in 91 countries and 200 destinations worldwide. Means of transportation: As of autumn 2005, Cargo operates a rationalized fleet of thirteen Boeing 747 freighters, including three latest-generation ERF (models with extended operating range entered into operation in October 2002) which carry more than half of cargo traffic. The rest is transported in the holds of passenger aircraft. Furthermore, Cargo has several partners worldwide whose aircraft and trucks are used to operate routes to other destinations in addition to the Cargo network. In this way, the SkyTeam Cargo alliance has introduced the one-roof concept, providing rapid, optimized handling of goods handed over to one of the partner airlines. In its own terminals, Cargo also handles its partners cargo. The Cargo Hub at Paris-CDG is one of six major alliance hubs which together represent 35% of total tonnage handled by the SkyTeam partners. 31

33 III/ A DAILY CHALLENGE: 800 FLIGHTS A DAY teams 1. The Paris-CDG Ground Operations Division 2. The Paris-CDG2 Hub workforce 3. Professions in Operations On-time performance The Hub Control Centre Paris Airports Authority: a privileged partner of partners at Paris-Charles de Gaulle 2 1. Air Traffic Control 2. Security 3. SERVAIR The fleet Environmental protection 1. Noise energy under tight control 2. Fuel consumption and aircraft emission 3. Air quality around airports 32

34 THE AIR FRANCE TEAMS 1. The Paris-CDG Ground Operations Division The CDG Ground Operations Division groups all the ground staff working at the Paris-Charles de Gaulle hub. The division manages more than 8,000 staff in complementary professions. It comprises 7 sections: Terminals 2A, 2C 2E and CDG1 (long and medium-haul) Terminals 2B and 2D (medium-haul) Terminal 2F (long and medium-haul) Connections (passengers and baggage) Lounges Sales Hub Operations Control Centre 2. The Paris-CDG2 Hub Workforce A. To cope with expanding operations, has increased the workforce The expansion of the Hub workforce was a natural consequence of the Company's recovery and subsequent growth. In 1994, Paris-CDG2 employed approximately 3,200 people. Two years later, 's recovery was well under way, and the setting up of the Hub raised the workforce to 3,900. Since then, the Hub has shown exceptional growth, with: the opening of terminal 2F, then the partial opening of terminal 2E in June 2003, the opening of the third and fourth runways, the renewal and expansion of the fleet, a policy of strategic alliances. Today, the Hub employs more than 8,000 people, and is continuing its development as part of the Hub project, with the delivery of the future baggage sorting system and the opening of satellite 3. B. A hiring policy boosting local employment The rapid growth of 's Hub operations has led to the hiring of very many young people, who today form part of the Company. They were mainly recruited in the neighboring départements of Seine-et-Marne, Seine-Saint-Denis and Val d'oise, the idea being that any expansion of Paris-Charles-de-Gaulle 2 had to benefit local employment. 33

35 responded very positively to the strong demand for local employment through: apprenticeship contracts leading to a diploma in "reception jobs in the transport industry", equivalent to the baccalaureat plus one year, in the sandwich course training centre for air transport professions, based in Vilgénis in the Paris region and organized by. professional insertion training courses for Aircraft Service Agents (ASA) and preparation courses to become Passenger Service Agents, in partnership with the "Jeremy"(1) Association, so that young people in difficulty are properly prepared through insertion measures. Furthermore, has also endeavoured to develop the careers of its own staff and to pursue an aggressive policy of in-house promotions. C. A Young Workforce Age of the workforce at Paris-CDG2 (Summer 2005) Male Female Average = 37,96 Averazge = 34, Average = 36, (1) The «Jeremy» Association groups 19 firms located on the airport, and aims to offer young people from the neighbourhood who are in difficulty, a sandwich training course leading to qualified employment. 34

36 D. Training Paris-CDG2 Staff To accompany the opening of terminal 2E and the implementation of the Passenger Operations Project, the Paris-CDG Ground Operations Division has to develop the professionalism of its teams. To do this, the human resources training department has fixed itself the objective to continue and sustain the efforts already undertaken: support the expansion of the Hub adapt staff to new technologies reinforce efforts in essential areas such as quality, customer service relations, security or management. Number of training hours at the Hub 2000/ / / / /2005 number of hours 330, , , , ,687 The hiring of new staff necessitates a major training program. As an example, during his or her first four months of employment, a young recruit in the "passenger services" sector is given about 136 training hours. Induction courses are available consisting of theoretical units alternating with hands-on experience. An integration process for new recruits has been implemented since November 2000, including a welcome meeting with human resource managers, department managers, feedback etc. Over and above initial training, the training division has started to focus on quality assessment. By rationalizing its training programs, and by optimizing the use of its teaching methods, it intends to promote and increase further training opportunities for all staff. 3. Professions in Operations The various professions in Operations can be divided into three sectors: A. One sector dedicated to customer services in reception, sales and check-in. This sector employs close to 4,300 staff (74.6% women and 25.4% men) (2). 35

37 Passenger services agents are assigned either to check-in or boarding, or to connections or lounges. Some of these agents have special functions: the "GIRS" agents, whose task is to intervene at any operational irregularity; multi-lingual agents, who apart from French and English also speak Hindi, Indonesian, Thai, Chinese, Japanese, Arabic, Korean, Latin American Spanish or Portuguese to welcome and help foreign passengers, agents who know sign language. Sales agents are available to inform customers, promote products and services and contribute to boosting the revenues of ticket offices. is preparing for change in this professional sector through 4 different initiatives: by taking on new recruits, through special training in "connections" given the more complex passenger handling procedures (increased traffic and commercial developments), by taking into account upstream operations (flight management), by adapting to new products (e.g. the T atou check-in tool, self-service kiosks etc.). B. A sector dedicated to the handling of aircraft and baggage, for which Air France has developed an innovative and multi-skilled workplace organization. This sector comprises 1,800 staff (exclusively male population) (3). Recent changes in these professions have led to the implementation of the following measures: the development of "towing" and "ferrying" qualifications for aircraft on the ground, according to hub requirements, the setting up of a coordinating function to improve the handling of transit baggage. C. A sector dedicated to aircraft operations on the ground and to preparing the necessary loading documents (holds, fuel, cabin). This sector employs 500 agents (42.6% women and 57.4% men) (4). The aircraft services agent is responsible for preparing a flight for departure, from distributing the load to refueling. He or she organizes the loading of baggage, cargo and catering supplies, including those provided by outside suppliers (cabin cleaning and catering). He or she is the only direct link between the ramp, passenger operations and crew. Recent developments in this profession have led to the introduction of supervisory staff to oversee the execution of these tasks, as well as special training in the fields of security and safety for these technical operations. 36

38 D. These 3 major professional sectors are run by 900 supervisors and managers, 51.3% of whom are women and 48.7% men. Station management (480): 60% women and 40% men Executives (420): 42% women and 58% men (5). Management and support functions (technical: e.g. equipment maintenance or operations, or administrative positions) comprise close to 470 persons, 34.5% of whom are women and 65.5% men (6). (2) to (6): Summer 2005 figures 37

39 ON-TIME PERFORMANCE Punctuality is a key factor in the quality of service provided to customers by an airline such as. Improving its on-time performance is one of the airline s main objectives. Since November 2000, issues its punctuality figures each month. The criteria is the percentage of flights which leave on time or less than fifteen minutes late, and for any reason. is the only European airline to release these figures. In 2002, benefited from improvements in air traffic control, thanks to the new RVSM system (vertical separation of aircraft in flight) implemented in January, followed by the fourth air corridor for entry to Paris as from 21 March, the fruit of lengthy efforts by teams to obtain this from the DGAC (French Civil Aviation Authorities), which especially relieves hub traffic at Paris-Charles de Gaulle. As well as this, practical measures have been taken with regard to check-in and boarding procedures, baggage handling and ramp operations. Here are a few examples: Check-in: A check-in agent is responsible for guiding passengers to the right checkin line and checking their deadline in case it is necessary to shorten procedures. He or she must also ensure that the check-in lines are fairly even, so that the flight is not held up. Concerning baggage and connections: a flight can be delayed when passengers do not show up for boarding and for security reasons, their baggage must be located in the hold in order to be unloaded. One answer to this problem is provided by the "SRB" tool (baggage reconciliation system). It enables baggage to be instantaneously identified and located, thereby cutting tracing time by 40%. Apart from this system, one way of rectifying this situation is to mobilize the entire service chain, from information given to customers upstream (reservations, departure station, flight) to their handling in Paris-CDG2. Many initiatives have been taken or will be soon. They include reminding passengers of the local time in Paris on inflight videos, providing them with information on connecting channels and installing appropriate signage. Another answer is through «ACARS», which enables the crew to inform passengers of their departure halls. ACARS is a ground/air communication system, which enables the crew to help passengers with connections. Messages are sent to the crew through this system, between 90 and 20 minutes before landing, to give them the following information: 38

40 The parking stand for the aircraft, the arrivals terminal, gate and number of the baggage carousel. Information on connections: estimated time of departure, number of connecting passengers on the flight, and special procedures arranged, if any (connecting assistance). New onward routing for passengers who will not make their connecting flight. (This is simply a reservation. If the initial flight is delayed, passengers remain booked on this flight.) Thanks to information from ACARS, the crew can inform customers before they disembark on how they should get their connecting flight. Ground handling of aircraft: all operations carried out on the ground are standardized in terms of time and quality. The flight coordinator orchestrates the aircraft turnaround by carefully timing the various operations to be carried out on the aircraft: refueling, loading of catering supplies, cleaning, filling up and emptying water, cargo, maintenance and baggage loading. He or she guarantees the safety and punctuality of operations. The aim is to keep to the schedule and to make up for any precious minutes lost during a delay. Every minute counts... Over and above basic station operations, the Hub must plan for unforeseen everyday events such as weather conditions, technical failures or air traffic delays. The aim of the Paris-CDG2 Hub is to maintain a regular schedule, whatever the operating conditions. It also has to develop greater professionalism (analysis and feedback) in handling these irregularities through procedures adapted to each event and known by one and all. AGORA is a computerized system which makes available to all its ramp operators, so that they are immediately notified of any major irregularities concerning their sector. This system improves both responsiveness and service quality, because it gives all the partners the same information. In the case of short connections or "aircraft to aircraft transfers", special transfer agents can help some of our customers to make their connections, which they would not have done otherwise. Mock emergency situations are used by to improve procedures for coping with operating difficulties. Action data sheets are prepared and updated for each type of event, e.g. runaway closure, poor weather conditions, diversions and technical failures. 39

41 Results are improving but have yet to be seen by customers. Experience has shown that when operating irregularities occur, customers judge on how they are kept informed and the pertinence of the information provided. Actions have been taken over the past few years, such as: the extension of the ROC (Reservations Operations Center) which informs passengers of irregularities in real time and offers solutions ( is the only airline to offer this service); a systematic announcement at the expected time of boarding; the implementation of signage guidelines between and Aéroports de Paris (ADP) which gives passengers information on their flight as soon as they arrive in the terminal; change in procedures linked to operating irregularities and their diffusion on the entire network to provide a coherent image. In September 2003, a project was launched within the Company on the subject of handling customer relations which reinforces the Hub s action plan by: improving sound at the boarding gates; developing large video screens (like those in terminal 2E); drawing up an / ADP agreement in case of irregularities such as bad weather at the airport etc. having an information correspondent in the case of a crisis. All these actions are part of the service certification procedure which has enabled to be the first airline certified for its quality of service, and aim at constantly improving the way our customers perceive irregularities. 40

42 THE AIR FRANCE HUB CONTROL CENTRE The Hub Control Center (CC) plays a key role in 's organization at Paris- CDG2. It controls the 800 daily arrivals and departures of flights at Paris-CDG2 with utmost precision. At the same time, it guarantees the safety of operations. The Hub CC manages in real time all the resources required to prepare the aircraft, coordinates ramp operations around the aircraft and assigns parking stands to each aircraft. The Hub CC is manned by close to 300 staff, whose task is to assist and coordinate all the operating teams. The operational decision-maker analyses all the available operating data to make the necessary decisions to improve service quality. The connections manager is in charge of all passenger and baggage connections at the hub for optimum quality of service. The operational decision-maker s deputy assists the connections manager with the information and communications plan for external events which could have an impact on hub operations. The technical duty manager, together with the maintenance staff, is responsible for rapidly assessing the time required to deal with aircraft repairs. He or she is also in charge of preparing and implementing the "bad weather conditions" procedures. Parking stand supervisory agents are in charge of assigning parking stands at Paris-CDG2 to each arriving aircraft ( and partner flights as well as those of handled and non-handled airlines) and if necessary decides to move aircraft to improve the gate parking rate. Operations supervisory agents in charge of Paris-CDG2 terminals, with one position reserved for the traffic of regional airlines. They coordinate the work of the various ramp operators (flight dispatcher, station manager on duty, etc.) and the Operations Control Centre (OCC). They also intervene on s commercial frequency (VHF) for departures. Liaison staff use VHS radio frequencies to provide arriving crews with information on their parking stand and on the type of reception planned for their passengers (connections, passengers requiring special assistance, etc.). The connections management team examines each connecting passenger's reservation file whenever the connecting time is less than the MCT (minimum connecting time publicized by travel agents for Paris-CDG2) and decides on the appropriate measures to take. This is where the decisions on whether or not to initiate an aircraft-to-boarding gate transfer are taken (transit passengers handled by transfer escorts). 41

43 The tower cab, located in the main tower cab of the southern control tower, uses a Hub CC agent to coordinate the work of the Hub CC parking stand agents and air traffic control. The SERVAIR/ACNA correspondent is the link between the Hub CC and the SERVAIR (catering) and ACNA (cleaning) service providers, in order to minimize the impact of operating incidents. The partner relation correspondent is in charge of monitoring the activities of two main service providers, PASSERELLE (handling reduced mobility passengers) and AEROPASS (airside bus services) to maintain the quality of service expected by our customers. The aircraft movement and handling sector, together with the parking stand supervisory agents, is responsible for towing some fifty aircraft in an aim to optimize on-stand parking. The GIRS (Rapid Intervention Task Force) comprises 60 passenger services agents who have the necessary experience to intervene in all major commercial crises (very late arrival of long-haul flights, return of an aircraft which has just taken off for technical reasons, etc.). They are there to back up existing staff and to offer customers quality service despite disruption. These agents also provide assistance for private flights at Paris-CDG2, as well as the arrival and departure of air/rail flights to and from Brussels on the Thalys high-speed train (one to three carriages used exclusively by for its transit passengers). The Hub CC is in charge of organizing and implementing procedures in case of disruption of any kind affecting operations, so that customers are inconvenienced as little as possible. It also has a feedback service to enrich existing procedures. 42

44 A PRIVILEGED PARTNER OF AIR FRANCE: PARIS AIRPORTS AUTHORITY The Hub at Paris-CDG2 relies on the ground facilities made available by the Paris Airports Authority. The Paris Airports Authority (ADP), which both owns and manages the airport installations in Roissy and Orly, is an essential partner for. and ADP have a relationship that can be defined as customer to supplier. ADP is in charge of building work and the management of airport ground facilities such as runways, aircraft parking stands, taxiways and terminals. These facilities are either: made available to. These are "public areas", financed by revenues from the airport tax which appears on tickets; leased out by ADP. This is the case for check-in desks, aircraft parking stands and baggage sorting machines while for ticket offices, pays usage fees; This relationship also includes: a concerted development of ground facilities with providing specifications. the management of certain activities delegated to by ADP, in order to optimize airport resources. These include the allotment of aircraft parking stands, the sorting system for transit baggage, check-in desks, boarding gates, and jetways. reciprocal services under contract which include quality clauses. 43

45 AIR FRANCE PARTNERS AT PARIS-CDG 1. Air traffic control Paris-Charles de Gaulle, the busiest European airport in terms of air traffic, is equipped with three air traffic control towers. The south tower handles landings and take-offs simultaneously on both south runways. It also handles aircraft taxiing on the southern part of the airport. The central tower handles landings and take-offs alternately on the two north runways including all aircraft in approach phase. It also handles aircraft taxiing on the northern part of the airport. A third tower to the north of the airport will handle traffic in optimal conditions on the north runways. It is expected to be operational early in November 2005, followed by the north runways one month later. The smooth operation of flights in progress is the concern of (at the operations coordination centre) and the staff in charge of air navigation. Above all it is during disruptive situations such as fog, snow, repairs etc. that the Hub Control Centre deals with staff in charge of the resulting irregularities. However handles the allotment of aircraft parking stands internally through its Hub Control Centre. In addition, the Operations Control Centre is in contact with the CFMU (European flight dispatch centre located in Brussels) for managing the "ATC slottimes" linked to air-traffic congestion. 2. Security The government (police, customs, military police) ensures the protection of people (passengers, flight crews, ground staff, installations and aircraft) and goods at Paris- Charles de Gaulle. Various departments are involved in ensuring civil aviation security: The PAF, border police, is in charge of guarding areas open to the general public, supervision of filtering and inspection of passengers and their cabin baggage. Since 1994 these operations have been carried out by private companies (article L of the Civil Aviation Code). The PAF also handles border controls and access to the restricted areas of the terminals. 44

46 The GTA (Air Transport Military Police) monitors restricted areas outside the terminals (gates in the perimeter fence and aircraft movement areas). Depending on the terminal, the GTA also supervises security checks on passengers' hold baggage carried out by private companies. The Customs Service inspects incoming goods (passenger baggage, cargo and mail) as well as overseeing security measures for cargo. The customs services also have a major role to play in the fight against drug trafficking. The Paris Airports Authority employs private security firms operating at the airport. The cost of this service is met by the airport tax (e.g. safety and security tax) since 1 st July The DGAC, the French Civil Aviation Authority drafts the general texts and makes sure they are implemented. The DGAC draws up the security measures to be taken for the hub's different operators. 's department in charge of security draws up the security program for the Company. implements the security measures for which it is responsible. For example the SRB automatic baggage/passenger recognition service, on stream since January 31 st 2000 is one of the best in the world. Depending on the circumstances, may choose to implement supplementary security measures. Every member of the hub staff is involved in the measures applied, which today constitute just one of the many facets of operating commercial flights. Security implies transparency and credibility. It signifies trust between the flight captain and ground personnel handling the aircraft, and is based on transparency with regard to the security measures applied. The station manager is responsible for ensuring security on the ground. The captain is responsible for ensuring security during the flight. Airline staff strictly comply with the security measures. NB: If an agent chooses not to apply a security measure, his or her penal liability is involved. Specific measures All participants involved in the security of international civil aviation: State authorities, airport authorities, airlines and aircraft manufacturers have taken immediate action in response to the new threat posed by the 11 September hijackings. Since 1 November 2003, all aircraft are equipped with reinforced cockpit doors, with a video system to protect access to the cockpit, in compliance with appendix 6 in the ICAO instructions. 45

47 In France, measures have been taken on a national level along with the related regulations and decrees with the introduction of R2320. These measures have been imposed on all airlines departing from French territories. The TSA has asked for specific measures to be implemented on all flights departing for the US, or for flights which use American air space. These measures include APIS (Advance Passenger Information System) whereby passengers details ( name, first name, date of birth, sex, nationality, passport number and, by the end of 2005, the passenger s place of residence in the US) are transferred to the US authorities. What security measures have been implemented in France? 1) The decrees of 1 September and 12 November 2003 impose the implementation of security measures. These decisions were implemented either by the State (Police, Gendarmerie, Customs officers), the airport authorities, or by the airlines. The following are some of those measures : Matching of travel documents at check-in Flights to the USA and Israel; all check-in agents must ask security questions during passenger/baggage check-in Passengers must be informed that it is forbidden to carry aboard knives, lighters (USA), scissors (all blade lengths), firearm or any item that could be used as a weapon Passenger security checkpoints have additional hand metal detectors checks and visual inspection of 25% of carry-on bags Matching of travel documents at boarding Guarantee of no missing passengers on board (by Crew checking boarding passes at the door of the aircraft and by a systematic passenger head count) Passenger stream segregation for arrivals and for departures Baggage reconciliation Reinforcement of checks for restricted areas access and for airport ID passes Crews : ID and crewlist checks; either they shall pass through a security check point at the airport, or, for crews based at Paris-CDG or Paris-Orly, they shall follow a specific route to have access to reserved areas with random security controls performed by the authorities On board goods and supplies : verification and sealing of all trolleys before being loaded on board Security checking of aircraft when leaving maintenance hangars for first flight. Passenger profiling on all flights to Israel Random visual checks of carry-on bags and random passenger checks with handheld metal detectors at boarding (or in the jetway) for flights to Israel 46

48 2) TSA security measures requested for all flights leaving France for the USA Hand search of hold baggage at check-in Random visual checks of carry-on bags and random passenger checks with handheld metal detectors at boarding (or in the jetway) Visual inspection of all staff who come into contact with an aircraft 100% screening of all checked-in baggage by an EDS machine (Explosive Detector System) Passenger profiling on all flights to USA Cabin cleaning control procedure on all flights to USA Comparison of passenger lists against identified persons whose access to the US has been prohibited 3) s Security Measures are as following: Headcount of all on board passengers (so-called anti-escape procedure, which could be replaced by agents controlling boarding jetways) Permanent mobile patrols on the tarmac (by car) at Orly West and at CDG to keep a watch on aircraft and to randomly check staff. This has been made compulsory by the DGAC, and extended to six other airports in France handling more than 3 million passengers per year. Security agents on board certain flights. They are under the Flight Captain s orders and their main function is to keep a watch over access to the cockpit and to neutralize all potential aggressors. Sealing of night-stop aircraft Since 1 January 2003, 100% of hold baggage screened by high-tech machines capable of detecting explosives in hold baggage. The automatic baggage/passenger reconciliation equipment (SRB) used at Paris- CDG2 has been implemented at a number of other French airports including Paris- Orly, Lyon, Bordeaux, Toulouse, Marseille, Nice, Montpellier and Strasbourg. Obligations of the French carrier: The security measures conform to the following regulatory obligation: - Security Manual: the Airline s security program. It contains all the applicable measures that should be taken in response to a threat - Security Training: operating staff must follow this training before taking up their functions and refresher courses are provided every three years; - Security Quality Assurance Program: the aim is to ensure that security measures are applied correctly and that corrective measures are implemented should any anomaly be detected. This program is intended for the Airline and all its partners. 47

49 Obligations of all Company personnel: - have a valid airside pass for the specific sector in which the worker operates. The airside pass is personal and must be visible at all times - have a specific function in a restricted area and /or access to an aircraft - have a second document with an identity photo on one s person - for crew members: be able to show a piece of identity with the Crew Member Certificate (CMC). Two government decrees published in 2003 introduced these measures in the regulatory framework. New sanctions are applied to those who do not comply with security obligations: - a fine of 7,500 euros per infraction for the Company concerned, - a fine of 750 euros (and airport pass confiscated) for agents who do not comply with security regulations. The Local Security Committee (CLS), presided by the Prefect, is in charge of coordinating decree-related work and crisis management situations. The CLS?? comprises French State representatives working at the airport together with airport operations representatives, airlines and other agents authorized to access or work in restricted areas of the airport. Flight security is of primordial importance. It takes precedence over the punctuality of flights and each party is an essential link in the security chain. 3. SERVAIR SERVAIR is an subsidiary and a major global provider of inflight catering and airport assistance. The third-ranking caterer in the world, SERVAIR provides Air France and 130 other airlines a full range of indispensable services for air transport and passenger comfort. SERVAIR, its subsidiaries and network of partners have a total of 90 sites worldwide. and boasted turnover of 564 million euros in SERVAIR s experience in the airline business has led it to develop 3 major sectors of activity which meet the demands of its customers and therefore its passengers: Catering: composes the meals, prepares them, makes up the trays and transports the meals to the aircraft; Cleaning and general airport assistance including ramp assistance, security and press handling; Servair Consulting, with a full range of the best services available, both in-flight and on the ground. 48

50 SERVAIR and quality Right from the start, SERVAIR s priorities have been hygiene, quality and food safety. It has successfully developed this strategy in an aim to guaranteeing quality of service to its customers. As far as food safety is concerned, all SERVAIR centres apply the HACCP analysis method (Hazard Analysis and Critical Control Point). At its central laboratory, SERVAIR carries out close to 50,000 analyses every year. As far as certification is concerned, SERVAIR today has 15 ISO 9001 V2000 certified units, including Dakar Catering, one of the leading catering groups in Africa. All units are being progressively certified. SERVAIR at Paris-Charles de Gaulle. Catering sites As well as the traditional catering sites for long, medium and short-haul flights such as SERVAIR 1, SERVAIR 2, Bruneau Pégorier Catering and CPA Catering, there are also specific sites such as SMC (Special Meals Catering) for kosher meals, CAP (Culin Air Paris), for charter flight meals and Jet Chef for business flight meals. Cleaning and airport assistance sites The diversity of airport assistance has led SERVAIR to develop specialized subsidiaries for each of its activities. ACNA, is one of the major aircraft cleaning companies in Europe, and is in charge of supplies and cabin and cockpit cleaning, including other cabin stores (pillows, blankets, and travel kits). PASSERELLE An ACNA subsidiary, PASSERELLE is specialized in assisting reduced mobility passengers, and works for at Paris-CDG2. P.M.AIR P.M.AIR also assists reduced mobility passengers, at Orly airport. SERVANTAGE This subsidiary is in charge of press handling (newspapers and magazines) for more than 15 airlines. SERVANTAGE is also in charge of the upkeep of the VIP lounges. AEROSUR An ACNA subsidiary, AEROSUR is involved in air security and is in charge of securing the cabins and catering products. LOGAIR Logair is specialized in the management of in-flight duty free sales. 49

51 THE AIR FRANCE FLEET On 31 March 2005, the fleet comprised 249 aircraft in operation, as well as 121 aircraft operated by s regional subsidiaries (Brit Air, City Jet, Régional). On the strength of the success of the Paris-CDG 2 hub and its development prospects, has opted for: - long-haul aircraft with an extended operating range, such as the Boeing and 300ER, the Airbus A and A , as well as the A380 which will be integrated into the Airline s fleet mid medium-haul aircraft include the Airbus A318, A319, A320, and A321. These medium-haul planes can be piloted by the same crew and maintained by the same technicians. Almost three quarters of the investment plan for the next five years will be dedicated to modernizing and rationalizing the fleet. is also planning to reduce the number of aircraft models used, for greater profitability and flexibility in scheduling. The Group fleet in operation on 31 March 2005: Medium-haul Boeing / Airbus A318 9 A A A Sub-total medium-haul 147 Long-haul Airbus A A Boeing / /300ER 34 Sub-total long-haul 90 passengers Boeing F (cargo) ERF (cargo) 4 Sub-total long-haul 102 Total 249 On 31 March 2005, the average age of the fleet was 8.6 years. 50

52 Online Fleet Maintenance: s Hub at Paris-Charles de Gaulle Organizing the flight schedule around 6 connecting banks results in highly intensive periods of online maintenance. Consequently, the Maintenance Division tries to plan for the type of operation it might have to carry out during a particular aircraft s turnaround. For this it uses an automated system - ACARS - which is a ground /air communication system used to obtain information about the technical condition of an aircraft before it lands over a radio link. This avoids technical problems having a chain effect on delays for the rest of the day, as aircraft turnaround times are extremely tight. Short turnaround times require the specific organization of online maintenance with dedicated services: planning involves improving logistics, notably by ensuring that the right parts are in the right place at the right time, so that repairs can be speedily carried out. The online maintenance teams permanent objective is to ensure the airworthiness of the fleet and technically approve each aircraft before delivering it to the crew. During the day, the aim is for aircraft to be up and away as quickly as possible: any minor repairs that can be delayed without jeopardizing safety - and subject to regulations and operating conditions applicable to this flight are carried out when the aircraft is grounded for maintenance. Improving on-time performance of flights relies heavily on the maintenance division. Several action plans have allowed to improve performance significantly. Two maintenance operations centres were set up in November 2000 at Paris-CDG2: one opposite terminal 2C for long-haul flights and another opposite terminal 2D for medium-haul flights. Dedicated teams assist maintenance staff around the aircraft. A team of three to four agents supervised by a maintenance manager is also present 24 hours a day, 7 days a week, which helps to simplify decision-making procedures at s Operations Control Centre. The Hub Maintenance Centre, located opposite Satellite S3, east of the Paris-CDG2 terminals, will become operational mid maintenance teams will be able to work more closely together on the hub, allowing them to respond more quickly and efficiently. 51

53 ENVIRONMENTAL PROTECTION 1. Noise energy under tight control At the end of 2002, the French government decided to introduce tougher measures to limit noise emissions around Paris-CDG airport by These tougher measures concern in particular five major themes: - limit noise emissions at night and forbid all non-scheduled night take-offs - comply with the arrival and departure flight paths - retire the noisiest aircraft from flight operations - set up a global noise indicator so that noise emission measurements are made completely transparent - increase the funding available for sound proofing of residential properties in the vicinity of the airport Night time limitation measures have been introduced to satisfy local residents. Air France has taken a pro active approach and has voluntarily chosen to reorganize flight schedules to comply with these restrictions. Although in 2002 it had 12 weekly frequencies operating in this slot, since April 2004, Cargo no longer has flights scheduled between 11 pm and 5 am. As far as passenger operations are concerned, since April 2004 only one daily flight arrives between midnight and 5 am. Night time limitation also implies reducing the number of delays occurring in an evening slot. According to Parisian Airports Authority figures, between March 2004 and March 2005 for the first year restrictions on non-scheduled departures between midnight and 5 am applied, only 106 of the 731 infringement reports established by the National Committee for the Prevention of Noise Pollution (CNPN) concerned Air France. This new ruling has considerably increased the number of infringements reported in comparison to previous years. For example, for the whole of the period between March 1999 and March 2004, only infringed regulations 79 times. Despite this steep rise, only 15 % of the infringements concern the airline even though is responsible for over 50% of the traffic at the Paris-Charles de Gaulle hub. The systematic implementation of warning measures, monitoring of daily on-time performance in the late evening timespan, improvement in the airlines procedures led by the CCO - the Flight Operations Center - have enabled to limit the number of non-scheduled night flight departures. However examination of the data by the CCO has revealed that over half the departures after midnight are caused by a delay beyond s control: namely 27% of delays are caused by security issues; 12% by passengers failing to appear at boarding or by pieces of baggage abandoned by mistake; 13% due to saturation of airspace or weather problems. 52

54 s own constraints, together with problems beyond the airline s control, including problems made worse by the accident which took place in Terminal E, have made it virtually impossible to achieve an objective of zero delays. Since non-scheduled flights after midnight have been prohibited, has been faced with a considerable challenge to its operations. In fact it is of utmost importance to control flight punctuality in the last timespan at the hub because that is where the day s flight irregularities accumulate. Hence the reason why has stepped up efforts to launch several action plans during this first year, both internally and externally, aimed at improving flight punctuality despite unfavourable conditions. Environmental Protection Volumes (EPV) were set up in 2003 to better channel flight paths on departure and on arrival. s response to these new requirements was to invest massively in crew training and fleet renewal. At a training level a module devoted to Environmental Protection Volumes has been included in crew training programmes. As for the fleet, those Boeing freighters without the radio navigation technology sufficient to adhere strictly to flight paths have been equipped with GPS (global positioning satellite) navigation systems. This revamping required investment of 9.5 million euros for ten aircraft, but the results have outweighed the cost. For a period spanning March 2004 to March 2005, was cited in only two reports of flight path deviation at Paris-Orly airport and only 3 at Paris-Charles de Gaulle for a total of 328,000 flight movements for the two airports. According to the French Civil Aviation Authority, improvement in noise energy is dependent on airlines operating fleets that meet the highest standards of acoustic quality. This is a principle that integrally applies to fleet management. In 2000, the decision was taken to no longer fly the noisiest aircraft between 11.30pm and 6am at Paris-CDG, the first airport in Europe to adopt such a measure. Night flights have been withdrawn progressively each year, and the process was completed in January A new phase in which the noisiest aircraft are to be withdrawn progressively over the daytime period, between 6am and 11.30pm, was initiated in October 2004 and will be complete in September Over the October period, has carried out 3,700 take-offs and landings out of a quota of 4,087. The quota has been filled thanks to the withdrawal of eight Boeing and 300 in and their replacement with more modern aircraft such as the 777 or is pursuing its efforts in terms of its fleet renewal policy (*), partly to comply with the French authorities requirements to make Paris-CDG the largest European airport to withdraw the noisiest aircraft from operation, in line with the current standard (chapter III in the OACI). (*)For the IATA year , contributed 500 million dollars to its fleet renewal. 53

55 The DGAC has decided to implement a global noise indicator to track variations in noise energy at Paris-CDG airport. This indicator, based on the noise measured within a 5,000 m area of both ends of the runway, is the Lden (day / evening / night) type. The Lden indicator is recommended by he European Commission. It is also used to compile noise maps in cities, along railway lines, motorways and industrial sites. All noise generated is weighted according to the timespan, i.e. a flight operated between 6pm-10pm (evening) will be calculated as the equivalent of 3 flights carried out during the 6am-6pm period (day); a flight operated between 10pm-6am (night) will be calculated as the equivalent of 10 flights carried out during the 6am-6pm period. The DGAC uses as a reference the average annual acoustic energy at the airport over the period (100% value of indicator). The recently published Paris-CDG 2003 indicator reached 89.5% of this reference. This results shows a clear improvement in noise emission over a relatively short period. On the basis of noise energy generated by its fleet of aircraft, evaluates its own noise indicator at 78.5%. has a key role to play in reducing the noise indicator at Paris-CDG airport and accordingly in improving the quality of the environment around the airport. This strategy is part of the fleet renewal policy carried out by the Company. 54

56 The project to provide assistance in soundproofing neighbourhoods surrounding major French airports aims to lessen the impact of noise pollution for residents in line with the polluter pays principle. The compensation fund is complemented by a takeoff tax (tax on airport noise pollution, TNSA) which takes into account the aircraft mass, the acoustic qualities of the craft and its departure time. For example, a flight operated between 10pm and 6am will be taxed 10 times that of a flight operated between 6am and 10pm. Since the mode of calculating the TNSA changed, Air France s contribution has been increased 2.5 times between 2001 and The amount of compensation in 2004 rose to 12.7 million euros for Paris-CDG airport and 10 million for Orly. Paris Airports Authority manages the compensation fund, via the Consultative Commission for Aid to Local Residents (CCAR), with contributing some 8 million euros to the budget. With this high contribution, 2,200 residences surrounding the two airports were soundproofed in actively supports this soundproofing work, not only in terms of funding but also by way of its involvement in the Consultative Commission for the Environment (CCE) and the CCAR. In full agreement with the authorities, Air France coordinates a policy of prevention and compensation based on two noise energy management tools, the Noise Exposure Plan (PEB) and Noise Pollution Map (PGS). 55

57 The Noise Exposure Plan defines iso-curves of noise level in areas surrounding the airport based on the airport s potential for development, and imposes appropriate ground occupation restrictions. This Plan also protects against the possibility of housing being constructed in areas likely to become exposed to aircraft noise emission in the future. The Noise Pollution Map defines noise limits which are regularly reviewed. Under the Noise Pollution Map, soundproofing work can, under certain circumstances, be compensated by the CCAR. The PEB and PGS must serve as a reference for any action taken by : prevent urbanization in areas already exposed to noise or likely to be so in the future; use funding appropriately in accordance with current budgets. Noise prevention can only be attained through strict application of the building and construction regulations drawn up by the PEB and compliance with the balanced approach principle defined by the International Civil Aviation Organization (ICAO) and adopted by the European Commission and French State. To ensure that the compensation policy becomes a permanent fixture in the current budget, would like to see soundproofing of housing most exposed to noise placed at the top of the agenda; grouped operations encouraged in order to generate scale economies and a good level of soundproofing, and finally, other records managed within the framework of the current budget. To conclude, has integrated environmental protection, particularly the reduction of noise emissions, into its activity, through team work, fleet management and operations. The results and benefits for local residents are tangible: night flights have been considerably reduced, source noise is decreasing, and noise emissions improved. has played a major role in the soundproofing assistance work surrounding Paris-CDG and Orly. These programs help to improve living conditions for residents and help make the presence of the surrounding airport more easy to tolerate. However, to ensure that noise levels continue to improve, the Company must be able to allocate a budget to the soundproofing assistance program. A too high contribution to the soundproofing program may reduce s financial capacity needed to implement actions to safeguard the environment. These actions allow to reduce noise pollution, independently of the fleet renewal effort, which thanks to a considerable investment effort, remains the essential driving force in improving noise emissions. 2. Fuel consumption and aircraft emission Fuel and carbon dioxide (CO2) Carbon dioxide emissions (CO2) are directly proportional to the amount of fuel burnt. The reduction of fuel consumption has had a positive effect on gas emissions. 56

58 Over the past few years, has succeeded in considerably reducing the fleet s CO2 emissions in line with half the growth in passenger traffic. This results translates a reduction in the average specific fuel consumption per passenger by 22% since This positive result has been achieved by the work carried out in the three following areas: Fleet renewal, generating a reduction in average specific fuel consumption by 2% per year; Network optimization thanks to the Paris-CDG hub structure allowing to improve load factors, and specific fuel consumption accordingly (higher load factor of 8.6 points since 1993); Operational measures such as the reduction of route fuel reserves 3% of necessary fuel (instead of 5%). Other measures such as shortening flight arrival or departure paths by reorganizing Paris airspace in 2002 have helped to attain these results. In 2004, flights posted an average fuel consumption of 2.03 litres to carry 100kg (including passengers, baggage, catering and facilities to ensure passengers comfort onboard) over 100km. Since 1996, passenger traffic has increased by 75% and cargo traffic by 13% while fuel consumption has only increased by 44%. PKT: passenger traffic in revenue passenger-km TKT: cargo traffic in freight tonne-km 57

59 Other emissions Carbon monoxide (CO), unburned hydrocarbons (HC) and nitrogen oxide (NOx) emissions mainly depend on the characteristics of engines and how aircraft are operated. The use of latest generation engines has led to a considerable reduction in fleet s CO and HC emissions and noise emissions and the stabilization of NOx emissions, which tend to increase in accordance with temperature and pressure inside the engine. 3. Air quality around airports Air activity NOx, CO, HC and various other particle emissions from aircraft cause an impact on the quality of air surrounding airports. Most of the greenhouse effects gases produced by both air and ground activities come from the LTO (landing and take-off) cycle. Therefore, according to available estimates, two thirds of total NOx emissions produced by planes are generated during these cycles, the second contributor being the road assistance services that transport passengers and agents to the airports. However, only less than half of CO and HC emissions are caused by air activity. The gradual introduction of technologically advanced equipment into the Airline s fleet is a key element in the airline s policy of reducing low altitude emissions. As a result, local CO and HC emissions have decreased by 50% and 90% respectively during the last forty years. Other measures have been adopted such as reducing the number of ramp vehicles. Where possible, two-engine and four-engine vehicles are driven with one or two of their engines shut down. has also decided to use the airport s electricity network as a preference to the thermal energy-producing APU (Auxiliary Power Unit) and GPU (Ground Power Unit) to supply aircraft on the ground. Ramp and other vehicles has reduced the impact of its ground activities by improving the efficiency of its maintenance teams, enhancing logistics, shortening distances covered by the vehicles and a renewed automobile fleet. During fiscal year 2004/05, acquired 90 new vehicles equipped with catalytic converters. 90% of light vehicles are now equipped and the average age of the vehicle fleet has been lowered to 6 years. The renewal plan also concerns buses and trucks equipped with engines compliant with Euro-3 standards. The use of electric power for ramp vehicles remains the targeted priority for Air France, although, for the time being, this type of engine power has not met all the requirements, particularly in terms of reliability. For example, has replaced thermic-powered vehicles with 40 electric vehicles used to load and unload baggage at its French stations. Furthermore, has developed, in conjunction with an aircraft tug manufacturer, eight electrically powered models to be used on several types of aircraft. These were phased in this year. 58

60 HUB KEY FIGURES (SUMMER 2005) 830 flights per day More than 17,900 connecting flight opportunities weekly each way 76,300 passengers per day (arrivals and departures) 23,900 passengers with connecting flights per day, more than 53% of the arrivals 28,000 items of connecting baggage per day More than 8,000 agents with complementary responsibilities 59

61 RECORD DAYS AT THE PARIS-CDG HUB 924 flights handled on 18 June ,825 customers passed through on 1 st July ,602 connecting customers on 13 August ,508 items of connecting baggage on 7 August % of customers with connections on 13 November

62 AIR FRANCE-KLM KEY FIGURES ( FY) Group turnover billion euros (+ 7.3%) Breakdown of turnover Scheduled passenger transportation: bn euros Cargo: 2.49 bn euros Maintenance: 0.78 bn euros Other air transport operations: 0.81 bn euros Group net profit 351 million euros (consolidated net profit for over 12 months, April- March, and over 11 months, May-March for KLM) Traffic Data -KLM ranked 1 st worldwide in international passenger transport 64,1 million passengers carried Passenger load factor: 78.7% Group network 234 destinations (Summer 05) in 119 countries. Fleet 551 aircraft in service (174 of which are operated by the regional subsidiaries) Group employees 102,077 staff (weighted annual average) Ground staff: 74,462 Flight deck crew: 7,786 Cabin crew: 19,829 Breakdown of share capital (11 April 2005) State: 18.6% Float: 62.7% Employees: 16.3% Treasury stock: 2.4% 61