Rising to new challenges to strengthen the Group
In just a few years, Air France-KLM has become a key player in international trade. As the European leader in international air transport, the Group has some major strengths when it comes to rising to new challenges.
Resilience in the face of a deteriorating global economic environment
As growth in air transport demand is closely linked to global growth, the dynamism of the airline sector depends on trends in the global economy. Despite an overall downturn in air traffic at the end of 2008, Air France-KLM has some robust competitive strengths that should underpin its resilience in the face of the financial and economic crisis.
Consolidating its leadership of the international airline arena
Since 2008, the Group's competitive environment has been affected by the downturn in the global economy which has forced most airlines to reduce their capacity. The trend in the airline industry is towards a strengthening of existing leadership positions, an acceleration in mergers and a reduction in the number of players. As the European air transport leader, Air France-KLM intends to play a pro-active role in forthcoming changes within the sector.
A new fuel hedging strategy
In the light of the highly volatile oil price at the beginning of 2009, Air France-KLM decided to review its fuel hedging strategy. This new strategy, approved by the Audit Committee and the Board of Directors, reduces the time span of the hedges from four to two years and the absolute amount from two years of consumption to 80% of a single year of consumption. (See also section 4 – Market risks and their management, page 104, Reference Document 2009-10).
Meeting the requirements linked to sustainable development
Air France-KLM made a commitment to becoming an industry benchmark in terms of corporate social responsibility and sustainable development. The Group is pursuing an ambitious sustainable development policy in order to become the air transport sector benchmark for corporate social responsibility and respect for the environment.
