ADR

American Depositary Receipt. Air France-KLM is listed on the New York Stock EXchange under ADR. The ADRs are negociable certificates representing a specific number of shares with a nominal value in dollars.

ADW

American Depositary Warrant. The ADWs correspond to warrants listed on the New York Stock Exchange.

AEA

Association of European Airlines. Created in 1952, notably by Air France and KLM, the AEA represents the interests of its members at the European Union institutions, the European Civil Aviation Conference and other organisations and associations.

Aircraft type

Aircraft of the same family, e.g. the Boeing B747 is a type of aircraft made up of the following sub-types: 747-100, B747-200, B747-300, B747-400.

Airframe

Aircraft without an engine.

Available seat-kilometers (ASK)

Total number of seats available for the transportation of paying passengers multiplied by the number of kilometers flown.

Available ton-kilometers (ATK)

Total number of tons available for the transport of freight multiplied by the number of kilometers covered.

Biometry

Technique allowing the identity of an individual to be checked, while crossing a national border for example, through the automatic recognition of certain pre-recorded physical characteristics.

Cabotage

Airline cabotage is the carriage of air traffic that originates and terminates within the boundaries of a given country by an air carrier of another country.

Cargo load factor

Revenue tonne-kilometers (RTK) divided by available tonne-kilometers (ATK).

Catering

Inflight catering involving the planning and preparation of meals and the assembly of meal trays designed to be served on board an aircraft.

Code sharing

In accordance with a code sharing agreement, two partner airlines offer services on the same aircraft, each with their own brand, their own IATA code and their own flight number.

Combi

Aircraft where the main deck is equipped for both the transportation of passengers and cargo. The freight is stored at the back of the aircraft and is accessed by a specially-fitted cargo door.

Coordinated airport

Airport where slots are allocated by a coordinator in accordance with pre-established rules. All major EU airports are coordinated.

DGAC

Direction Générale de l'Aviation Civile. Under the authority of the French ministry of transport, the DGAC is in charge of the security of air transport and of air space in France.

DGTL

Directoraat-Generaal Transport en Luchtvaart. Under the authority of the Dutch ministry of traffic and public works, the DGTL is in charge of the security of air transport and of air space in the Netherlands.

Dry lease

The leasing of an aircraft which is to be operated entirely (crew, maintenance, etc.) by the lessee.

E-services

Range of ground services for AIr France and KLM passangers, based on new information technology. E-services notably allow passengers to check in using self-service kiosks or via the companies' internet sites as well as the use of electronic tickets.

EASA

European Aviation Safety Agency. EASA develops a safety and environmental protection know how in civil aviation in order to assist the European institutions in preparing legislation, and putting measures into effect regarding aircraft security, organisations and associated staff.

Electronic ticketing

All the travel information for one or several passagers which, instead of being printed, is recorded in an airline company's IT database, once the reservation has been made and paid for. An electric or e-ticket replaces the traditional paper ticket.

ESA

Shares-for-salary exchange.

FAA

Federal Aviation Authority. Administration in charge of civil aviation security in the United States.

Fare combinability

System which offers csutomers on destinations served by both Air France and KLM to choose between an outbound trip via KLM's Amsterdam hub and inbound trip with Air France via Paris, or vice-versa, benefiting from the advantages of two half return tickets. With fare combinability, customers benefit from more frequencies fromeach of the hubs, on the inbound or outbound trip.

Freedoms

The right of an airline, obtained through bilateral agreements, to operate in the airspace and on the territory of a country other than its home country.

Fuel hedging

Financial mechanism aimed at protecting Air France-KLM from risk involved in increased fuel prices. Involves purchasing a fixed quantity of fuel prices. Involves purchasing a fixed quantity of fuel on a certain date and at a pre-determined price. Two types of financial instruments are used, option and swaps.

Handling

Preparation of the aircraft, involving loading and unloading, as well as the associated logistics such as management and storage of hotel products.

Hub

Term used for a connecting platform where departures and arrivals are scheduled to minimize transfer times. Air France-KLM has two of the four major European hubs : Roissy-Charles de Gaulle and Amsterdam-Schiphol. The Air France and KLM hubs are organized into successive waves for arrivals and departures each day in order to increase the options for connections available to the customers.

IATA

International Air Transport Association. Created in 1945, IATA establishes regulations for the air transport industry and provides its members with a framework for the coordination and proper implementation of tariffs, together with commercial and financial support services.

IATA fiscal year

Fiscal year starting April 1 and ending March 31 used by many airlines, including Air France. This enables better monitoring of activity trends during the “seasons” defined by the IATA.

ICAO

International Civil Aviation Organization, a UN Specialized Agency, promotes the safe, secure and sustainable development of civil aviation worldwide.It establishes the standards and regulations necessary to ensure the safety, security, efficiency and continuity of aviation operations as well as environmental protection.

IFRS

International Financial Reporting Standards. International accounting standards used by European Union listed companies in drawing up their consolidated financial statements. Adopted on January 1, 2005, they allow investors to compare European companies more easily.

Interline commission

Commissions paid by one airline to another when it has made a sale on behalf of the other airline.

Joint-venture

Joint company with two partners, often held equally with 50% each. This type of shareholder structure notably allows the implementation of technological or industrial alliances in order to undertake specific projects common to both partner companies.

Market capitalization

The market capitalization corresponds to the share price multiplied by the number of shares comprising the company's capital.

Multi-hub

System linking several hubs, allowing customers to access the networks developed from each hub, thus multiplying the offer of destinations.

Océane

Bonds convertible into new or existing shares.

Passenger load factor

Revenue passenger-kilometers (RPK) divided by the number of available seat-kilometers (ASK).

Passenger-kilometer

Revenue passenger kilometers are computed by multiplying the total number of paying passengers by the kilometers they have flown.

PEO

Public Exchange Offer corresponds to an offer to purchase shares in a target company in exchange for shares in the company initiating the offer.

Point-to-point traffic

Traffic between two airports excluding all passengers taking a connecting flight.

Premium class

Front section of the aircraft (or upper deck of a Boeing B747), where "high yield" passengers are seated, such as first or business class passengers.

Premium class

Tariff classifications corresponding to business or first class.

Ramp

Airport support activity, particularly runway maintenance and safety.

Revenue passenger-kilometer (RPK)

One fair-paying passenger transported one (RPK) kilometer.

Revenues

Revenues corresponds to the total revenues generated by the Air France-KLM group in its three core activities (passenger, cargo, maintenance)and its ancilliary activities.

Segment

Section of a flight between two stopovers on a flight with several stopovers. In the case of a two-segment flight there is one stopover between the departure and arrival points.

Sub-fleet

Group of aircraft of the same type with identical technical and commercial features (engines, cabin layout, etc.).

Summer season

Defined by IATA as the period running from the last Saturday in March to the last Saturday in October. The summer season corresponds to a schedule of summer flights over a period of 7 months.

Wet lease

The leasing of an aircraft where the crew, maintenance and insurance is provided by the lessor. This type of lease is generally invoiced by flight hour.

Winter season

Defined by IATA as the period running from the first Sunday following the last Saturday in October to the Friday before the last Friday in March. The winter season corresponds to a schedule of winter flights over 5 months.