Topic > Air France KLM Merger - 1309

MergerAir France – KLMOrganizational changeRoos Theunissen216576328-05-2014Index1. Introduction2. What contributed to the problems faced by Air-France-KLM after 2009?3. Air France – KLM4 organizational structure. New organizational structure Air France5. Transform 2015; have the measures revived the airline? Introduction There are many parties that have allied themselves to the merger. Schiphol was afraid of losing customers, the state thought unemployment should be a consequence and KLM just wanted to merge. KLM had been looking for a partner since 1991. KLM was looking for a partner because the European Union had stated that European aviation could be seen as a single market. Smaller countries feared their businesses would be oppressed by companies like Air France and Lufthansa. First, KLM saw British Airways as a potential partner. British Airways doesn't want to give enough power to KLM. KLM had to pay a big penalty to Alitalia and was making big mistakes strategically. The debts increased and to survive they had to immediately find a partner. When KLM was adopted, their debt was 6.1 billion. This was equal to the sales volume. KLM has not been profitable for the last 2 years, so the debt has piled up. Then they merged with Air France. But was it the right choice? First of all I will look at the problems that Air France and KLM face, then I will take a closer look at the organizational structure and at least what consequences "Transform 2015" had " floor. What contributed to the problems faced by Air-France-KLM after 2009? The merger had fundamental consequences for the two companies, but also for their competitors, the airports...... middle of paper ..... .ble, holds more "power" than KLM.Transform 2015; have the measures revived the airline? In January 2012 the company announced the “Transform 2015” plan. This is a recovery program aimed at restoring profitability. The 2011 loss highlights the need for this program to deliver, given the continued uncertainty of the outlook as Europe's economic problems persist against a backdrop of high fuel prices. Air France – KLM revenues were unable to absorb fuel expenses. But total revenue increased 4.5% year over year. The goal of the Transform plan is to reduce the Group's debt by 2 billion euros by the end of 2014. Before they had the Challenge 12 plan and this was a cost saving program. But this plan included reducing unit costs by 10% and cutting 2 billion euros from net debt by the end of 2014. Cutting 5,000 casual jobs is also part of this plan.