Maintenance business
Aircraft maintenance is the Air France-KLM Group’s 3rd business. In addition to the services provided to the Group fleets, one-third of this activity is realized with third-party customers, generating revenues amounting to over 4% of the Group’s total revenues.
- 7 industrial sites in France and the Netherlands,
- industrial facilities in Morocco, USA, Germany, the Middle-East and India,
- 14,000 employees,
- 1,200 aircraft departures per day on Air France-KLM fleets,
- 450 engine revisions per year,
- more than 1,300 aircraft under component support,
- total revenues: €3.1 billion (2010-11),
- external revenues: €1.0 billion (2010-11).
In the aeronautics maintenance or MRO (Maintenance, Repair and Overhaul) market, Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) ranks 2nd globally amongst the multi-product players. AFI KLM E&M has a dual mission: to ensure competitive support for the Air France and KLM fleets, and to be a leading MRO player contributing to the Group’s results.
AFI KLM E&M: well positioned but facing stiffer competition
The crisis has changed the relative positioning of the players in this market. The portfolios of some of Air France-KLM’s competitors have seen a marked deterioration due to the reduction in older-generation fleets and they are making a determined effort to re-position themselves in the next-generation products where AFI KLM E&M is particularly well positioned.
At the same time, airframe, engine and component manufacturers are significantly increasing their after-sales services on this market by offering customers increasingly-integrated maintenance solutions. This process, which has been amplified by the need to offset a declining revenue stream from crisis-hit original equipment sales, nevertheless reflects a long-term strategy based on leveraging intellectual property.
The Group’s suppliers are also its competitors and this trend is no longer limited to new aircraft programs (Goldcare 787) or to the action of engine manufacturers. In this environment, AFI KLM E&M increased third-party revenues by 7.6% over the financial year, capitalizing on its competitive strengths: the scale effects afforded by the Group’s own fleets together with those of its customers, an extensive range of services, the expertise of its teams and a policy of continuous improvement. All of the above are key advantages when it comes to executing the corporate strategy.
Affirming AFI KLM E&M’s position as a global leader
With its leading position as the global number 2 multi-product MRO by total revenue, AFI KLM E&M is pursuing a strategy of targeted growth, based on its specific strengths. This strategy is aimed at, firstly, reducing costs and maintaining high standards of quality and performance and, secondly, developing the customer portfolio in value-added products and services.
AFI KLM E&M has thus set itself 5 objectives aimed at achieving these strategic goals:
- contributing to flight safety initiatives and participating in operational performance
- financing profitable growth
- adapting products and services
- developing the global MRO network
- capitalizing on skills and adapting resources to activity growth
Products and services tailored to individual customers
More than 150 customers call on AFI KLM E&M’s services and value the flexible, customized solutions it offers. Every customer has his or her own unique set of specificities and requirements which the Group does its utmost to satisfy.
For further information
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