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Order HereAir France is targeting cost savings of €650 million ($735 million) over the next three years as part of the Air France-KLM Perform 2020 plan, which succeeds the group’s Transform 2015 program.
The target level of cost saving is equivalent to a 1.5% average annual reduction at the French carrier as the group targets more growth and competitiveness. The additional cost savings come on top of cuts of more than €1 billion in annual costs achieved by the group over three years as part of the Transform 2015 program.
Air France chairman and CEO Frederic Gagey said: “Air France must pursue its transformation to regain profitability while becoming its customers’ carrier of choice.”
KLM Royal Dutch Airlines is also targeting unit cost reductions averaging 1.5% a year over the next three years, equivalent to savings of around €390 million.
KLM president and CEO Pieter Elbers said: “The air transport environment is evolving very rapidly. KLM must learn to adapt more quickly if it is to maintain its position in this highly-competitive industry. Perform 2020 is a growth plan, designed to cut our costs but also to enable investment.”
He said that KLM also needed to invest in its operating processes to increase profitability and efficiency.
“Cost reduction notably implies significant productivity efforts where we are targeting at least 4% per year,” Elbers said. “A more horizontal organizational structure is also required.”
Elbers said Perform 2020 also included a corporate social responsibility dimension, with targets reducing waste, introducing responsible catering products, and saving energy. Both airlines are working on a range of initiatives to promote the development of the sustainable biofuels industry and KLM’s goal is to achieve a CO2 reduction of 20% by 2020, both on the ground and in the air. This will include fleet renewal initiatives, including the introduction of the Boeing 787-9, and replacing the Fokker 70 fleet withEmbraer E-175s and E-190s.
Gagey said Air France continues to operate one flight a week between Toulouse and Paris-Orly powered with biofuel within the framework of the Lab’line For the Futureoperation.
“This is our trial route to develop and promote this industry
of the future,” he said. He pointed out that progressive integration of next-generation aircraft across the group, including the Airbus A350, would “contribute to achieving our ambitious goals
in terms of reducing CO2 and noise emissions.”
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Order HereAir France is targeting cost savings of €650 million ($735 million) over the next three years as part of the Air France-KLM Perform 2020 plan, which succeeds the group’s Transform 2015 program.
The target level of cost saving is equivalent to a 1.5% average annual reduction at the French carrier as the group targets more growth and competitiveness. The additional cost savings come on top of cuts of more than €1 billion in annual costs achieved by the group over three years as part of the Transform 2015 program.
Air France chairman and CEO Frederic Gagey said: “Air France must pursue its transformation to regain profitability while becoming its customers’ carrier of choice.”
KLM Royal Dutch Airlines is also targeting unit cost reductions averaging 1.5% a year over the next three years, equivalent to savings of around €390 million.
KLM president and CEO Pieter Elbers said: “The air transport environment is evolving very rapidly. KLM must learn to adapt more quickly if it is to maintain its position in this highly-competitive industry. Perform 2020 is a growth plan, designed to cut our costs but also to enable investment.”
He said that KLM also needed to invest in its operating processes to increase profitability and efficiency.
“Cost reduction notably implies significant productivity efforts where we are targeting at least 4% per year,” Elbers said. “A more horizontal organizational structure is also required.”
Elbers said Perform 2020 also included a corporate social responsibility dimension, with targets reducing waste, introducing responsible catering products, and saving energy. Both airlines are working on a range of initiatives to promote the development of the sustainable biofuels industry and KLM’s goal is to achieve a CO2 reduction of 20% by 2020, both on the ground and in the air. This will include fleet renewal initiatives, including the introduction of the Boeing 787-9, and replacing the Fokker 70 fleet withEmbraer E-175s and E-190s.
Gagey said Air France continues to operate one flight a week between Toulouse and Paris-Orly powered with biofuel within the framework of the Lab’line For the Futureoperation.
“This is our trial route to develop and promote this industry
of the future,” he said. He pointed out that progressive integration of next-generation aircraft across the group, including the Airbus A350, would “contribute to achieving our ambitious goals
in terms of reducing CO2 and noise emissions.”
[content_timeline id=”1″]
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereAir France is targeting cost savings of €650 million ($735 million) over the next three years as part of the Air France-KLM Perform 2020 plan, which succeeds the group’s Transform 2015 program.
The target level of cost saving is equivalent to a 1.5% average annual reduction at the French carrier as the group targets more growth and competitiveness. The additional cost savings come on top of cuts of more than €1 billion in annual costs achieved by the group over three years as part of the Transform 2015 program.
Air France chairman and CEO Frederic Gagey said: “Air France must pursue its transformation to regain profitability while becoming its customers’ carrier of choice.”
KLM Royal Dutch Airlines is also targeting unit cost reductions averaging 1.5% a year over the next three years, equivalent to savings of around €390 million.
KLM president and CEO Pieter Elbers said: “The air transport environment is evolving very rapidly. KLM must learn to adapt more quickly if it is to maintain its position in this highly-competitive industry. Perform 2020 is a growth plan, designed to cut our costs but also to enable investment.”
He said that KLM also needed to invest in its operating processes to increase profitability and efficiency.
“Cost reduction notably implies significant productivity efforts where we are targeting at least 4% per year,” Elbers said. “A more horizontal organizational structure is also required.”
Elbers said Perform 2020 also included a corporate social responsibility dimension, with targets reducing waste, introducing responsible catering products, and saving energy. Both airlines are working on a range of initiatives to promote the development of the sustainable biofuels industry and KLM’s goal is to achieve a CO2 reduction of 20% by 2020, both on the ground and in the air. This will include fleet renewal initiatives, including the introduction of the Boeing 787-9, and replacing the Fokker 70 fleet withEmbraer E-175s and E-190s.
Gagey said Air France continues to operate one flight a week between Toulouse and Paris-Orly powered with biofuel within the framework of the Lab’line For the Futureoperation.
“This is our trial route to develop and promote this industry
of the future,” he said. He pointed out that progressive integration of next-generation aircraft across the group, including the Airbus A350, would “contribute to achieving our ambitious goals
in terms of reducing CO2 and noise emissions.”
[content_timeline id=”1″]
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.