AF-KLM cargo return to breakeven by 2017
27 / 02 / 2015
Air France-KLM has unveiled a group-wide Perform 2020 strategic plan that includes a slimmed down cargo business returning to operating breakeven by 2017.
The Franco-Dutch carrier has already announced the phase out of five MD-11 freighters belonging to Dutch subsidiary Martinair by the summer of 2016.
AF-KLM Martinair’s freighter fleet will be cut to two B777Fs in Paris (CDG) and three B747ERFs based at Amsterdam Schiphol.
A presentation of the Perform 2020 plan at an airline investor day was told: “A significant reduction in the full-freighter fleet, from 14 aircraft in operation in 2013 to five aircraft at the end of 2016, should enable this business to return to operating breakeven in 2017, versus a loss of €110 million in 2013 and a €200 million loss including bellies.
“The group will maintain a small full-freighter fleet as an important commercial lever to support its revenue premium on bellies.
“The group will remain a major player in the European cargo sector thanks to its extensive belly network, but with only very limited remaining exposure (15 per cent of capacity) to full-freighter volatility.”
Air France-KLM’s group chairman and chief executive, Alexandre de Juniac, commented on the passenger and freighter agenda: “Transform 2015 will be completed by the year end, having fully delivered on its objective of significantly improving the Group’s competitiveness and delivering a €1billion-plus reduction in costs.
“Perform 2020, the strategic plan we are launching today, will be supported by two main levers: growth, which we are looking to capture in a number of areas, and competitiveness combined with financial discipline which should continue to ensure firm foundations for the development of Air France-KLM.”
He added: “By 2020, we will have built an air transport Group focused on a leading long-haul network at the heart of global alliances, with a portfolio of unique brands, restructured short and medium-haul operations with a reinforced presence in the low cost segment in Europe, leadership positions in cargo, maintenance and catering, and a significantly improved risk profile both operationally and financially.”