Jean-Marc Janaillac, Chairman and CEO of Air France-KLM, has unveiled a new strategic project called “Trust Together” aimed at boosting competitiveness in order to capture a greater share of future growth and return to a leadership position. By 2020 the Group aims to reach revenues of around €28bn for 100 million passengers carried with a fleet of 435 aircraft (excluding regional aircraft). The unit cost reduction target for the 2017-2020 period is in excess of 1.5% per annum.

One of the project’s top strategic priorities is to regain the offensive in the long-haul sector. The group is targeting profitable growth for long-haul operations of between 2% and 3% per year through to 2020. Measures include the creation of a new company alongside Air France, which is competitive and innovative and will drive growth for the Paris-Charles de Gaulle hub.

This new company will constitute the Group’s response to the Gulf State airlines which are developing at low production costs on key markets where Air France-KLM is pursuing its growth ambition. This initiative to regain market share has been dubbed Boost. It will be focused on ultra-competitive markets and will enable the Group to go on the offensive by opening new routes, re-opening routes closed due to their lack of profitability and maintaining routes under threat. This new company will propose “a simple, modern and innovative offer, whose positioning will not be low cost”. It will offer its customers business and leisure destinations with standards comparable to those of Air France in terms of product quality and the professionalism of the crews.

The new company will also serve as a laboratory for the Group’s innovative ability in terms of products, digital and technology, catering, cabin design, services and the customer experience, as well as for working methods.

It will number 10 long-haul aircraft by 2020 with some 30% of operations focused on newly-created routes. It will operate with Air France pilots on a volunteer basis at work conditions adapted to its competitive positioning. The HR framework for this new company will be negotiated with the unions in the coming weeks.

Among the other priorities:

• Improve the efficiency and connectivity of the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs
• Develop the point-to-point markets on departure from the French and Dutch home markets, currently operated by Transavia, HOP! Air France, Air France and KLM. Commercial coordination between Transavia and the Group’s other airlines (HOP! Air France, Air France and KLM) will be stepped up to expand the offer to customers. The Group will rationalize its brands and optimize its networks in the French market. Starting from 2017, HOP! Air France and Transavia will be the only two brands in point-to-point.
• Strengthen the growth of the maintenance business
• Reinforce competitiveness and the utilization of aircraft