TravelMole
Air

Air France restructures business

Tuesday, 16 October 20123 min read

Air France is shaking up its management structure as part of its plans to improve competitiveness.

Under a three-year plan called ‘Transform 2015’, Air France-KLM is seeking to reduce operating costs by €2 billion to pay down debt.

From January 1, Air France will be split into eight business units – long-haul; medium-haul at Paris-CDG; Paris-Orly and the regional airports; the French Regional Hub; Transavia France; cargo; industrial operations; and Servair.

Each business unit will be responsible for controlling its own costs as well as following up the implementation of Transform 2015.

Meanwhile, passenger operations will be structured into three business units -long-haul; -medium-haul at Paris-CDG; -Paris-Orly and the regional airports.

Each vice president will have responsibility for the different stages of the customer’s trip, from marketing to the implementation of the ground and in-flight products by the ground and in-flight product teams.

A pilot and cabin crew manager will also report functionally to their VP.

Seven project managers have been appointed to work on the new organisation.

"Customer focus, reactivity and team work are our guiding principles that have led us to choose this organization. It aims to favour the roll-out of Transform 2015 and meet its ambitious objectives of a return to competitiveness and a more upmarket positioning of its products and services," said Air France chairman and CEO Alexandre de Juniac.