<<

2016 ANNUAL REPORT extensive airlinenetworks intheworld. by dipping into thesecards, according Board theBoeing787, thevery latest continue to expand oneof themost and services–particularly digital– recognized expertise andambition in maintenance. Learn more about that theGroup is deploying onthe Fly to ournew destinations which our Trust Togetherstrategicplan is now part ofis now theGroup’s part fleet. ground andintheairto satisfy new-generation aircraft which Explore theattention to detail its customers. Appreciate our to your desires andcuriosity. Discover AirFrance-KLM and visionof thefuture. HOLDING ALL THE CARDS… YOU ARE

AIR -KLM 2016 ANNUAL REPORT Photo credits: AirFrance-KLM Photo Library –Getty Images –HemisESA. by theAirFrance-KLM Communication Department. This documenthasbeenprinted by PrintAlliance Illustrations/pictos :©DamienGautier. Design andproduction: WWW.AIRFRANCEKLM.COM 2016 AnnualReport realized on Magnonatural paper. @AIRFRANCEKLM

AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM BUILDING

HORIZONS THE FUTURE JEAN-MARC JANAILLAC Chairman and Chief Executive Officer of Air France-KLM and Chairman of the Air France Board of Directors

In an uncertain geopolitical environment with increasingly fierce competition, we have given ourselves the resources to ensure more rapid development, enabling us to capture our share of the growth in the global air industry. This is the aim of Trust Together. This project is based on one imperative: improve the Group’s economic performance and competitiveness. All the “My wish for the employees of Air France-KLM Group is energy, are mobilized around successfully completing the initiatives boldness and a stemming from our strategic project. commitment to My wish for the Group is energy, innovation.” boldness and a commitment to innovation. With our customer- centric focus, we are thus working on increasing the efficiency of our hubs and simplifying our organizations. We are reinforcing our network by opening 53 new destinations and expanding our We also continue to develop our alliances. aeronautics maintenance business in growing markets. In a context of digital revolution and rapidly-changing customer With Trust Together, Air France-KLM needs, Air France-KLM is investing affirms its ambition of regaining massively in the new digital the offensive to return to a leadership technologies. position in the global air transport industry. AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM HORIZONS AMBITIOUS TARGETS FOR 2020: centric services. its offer of specific, customer- of innovation anddevelop Group needsto accelerate the and secure theirloyalty, the personalization. To winthemover with very strong demandfor of customers are changing, the behavior andexpectations Under theinfluence of digital, experience Enhancing the customer COMPANY PROJECT: TRUST TOGETHER (excluding regional aircraft) Afleet of 435aircraft 100 millionpassengers carried Revenues of €28 billion Three challengesforthefuture

sector inthecomingyears. of thestrong growth intheairline the Group to capture itsshare objectives. They willenable are AirFrance-KLM’s long-term the expertiseof employees relentlessly reinforcing Unleashing initiative and Cultivating talents in theairtransport market. of operational efficiency is alsotargeting avery highlevel to invest. Inparallel, theGroup over itsdestiny andbeingable non conditionto retaining control its competitiveness, thesinequa Air France-KLM must reinforce Reinforcing efficiency

AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM HORIZONS TO BUILDTHEFUTURE NINE STRATEGIC PRIORITIES of the maintenance business point-to-point on departure Improving the efficiency and The Group will continue its investment in The Groupwillcontinueitsinvestmentin point-to-point brandswillbeharmonized. and innovative offer.Air France-KLM will re-energized with the launch of the Boost re-energized withthelaunchofBoost Air France, thankstoasimple,competitive also continuetodevelop itspartnerships The priority for willbegrowth With the Boost project, the Group plans With theBoostproject,Groupplans this high-growth markettoreinforce its Amsterdam-Schiphol willbereinforced in itsFrench andDutchhomemarkets. On departure from France, theGroup’s The -Charles de Gaullehubwillbe To differentiateitself, Air France-KLM Strengthening the growth will continue to invest in digital tools, will continuetoinvestindigitaltools, the customer relationship with increasedcoordinationbetween like thealliancewithDeltaAirLines. customers andthemove up-market. connectivity ofthe hubs to createanew company alongside Regaining the offensive from the home markets Trust Together project in medium-haul. That of project inmedium-haul.Thatof a morepersonalized servicefor global numbertwo position. Further developing Further Transavia andKLM. in long-haul Developing 4 2 5 1 3

Reinforcing competitiveness its cargobusinessby optimizingtheuse Air France-KLM willpursue itslobbying initiatives directed atmore at Europeanlevel toestablishequitable action planstoimprove theexperience The Groupwillactonalllevels toalign Improving the experience accelerate the roll-out of digital tools accelerate theroll-outofdigitaltools Air France-KLM continuestorescale Air France-KLM willdeploy concrete on reducingfleetcosts by increasing Efforts willbe focused, inparticular, on digitization and the streamlining on digitizationandthestreamlining progress, likethereductioninParis of the CDG Express tax, will lighten of theCDGExpresstax,willlighten to encourage collaborative working to encouragecollaborativeworking airport fees and the postponement airport feesandthepostponement of bellies in medium- and long-haul of belliesinmedium-andlong-haul and simplify itsinternalprocesses. competition. InFrance, significant its competitiveness with the best its competitivenesswiththebest and the useofaircraft equitable competition of itsemployees. The Groupwill of processes,andonahighlevel Defending the cargo aircraft. The emphasis will be aircraft. Theemphasiswillbe simplifying working the burden of taxes and fees the burdenoftaxesandfees Pursuing lobbying of employees and the dailyuseofaircraft. industry standards. industry standards. of servicequality. on itsbusiness. methods business 8 6 9 7

AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM HORIZONS MANAGEMENT BODY A PROACTIVE Committee comprised13members. by theBoard of Directors. OnMarch 31, 2017, theExecutive main orientations withintheframework of thestrategy approved alternating between Amsterdam andParis, to define theGroup’s Air France-KLM’s Executive Committee meets every two weeks, BRACHET TERNER Air France-KLM Technology, President Information Executive Vice- Air France-KLM & Maintenance, Engineering Executive Vice-President Officer ofAir France Chief Executive and ChairmanoftheAirFrance BoardofDirectors Chairman andChiefExecutiveOfficerofAir France-KLM LALANNE

JEAN-CHRISTOPHE ANNE FRANCK JEAN-MARC JANAILLAC Executive Committee

Air France-KLM Human Resources, Vice-President and Executive Corporate Secretary Executive Vice-President CHALLON-KEMOUN ELBERS NANTY Air France-KLM and Communication, Marketing, Digital Executive Vice-President and CEOofKLM President

ADELINE PIETER JÉRÔME ALEXANDRE DE NOOIJER GAGEY Air France-KLM Sales andAlliances, President Commercial, Executive Vice- Air France-KLM Vice-President Cargo, Executive Air France-KLM Officer, Chief Financial

PATRICK MARCEL FRÉDÉRIC BOOTSMA BOISSY DE GROOT Air France-KLM Commercial Strategy, Vice-President Executive Chief ofStaff Executive Committee, of theGroup Secretary Officer, KLM Chief Operating

PIETER ALEXANDRE RENÉ

AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM 93 (1) atDecember 31,2016 HORIZONS 2 KEY FIGURES destinations in118countries 328 maintained for over , 200 customers 000 more than aircraft . in 2017 534 4 aircraft inoperation passengers in 2016 carried million (full time equivalent (1) inSummer 2017 82 business in2016 transported by new routes 53 million tons employees the cargo 1.1 , 175 (1) )

AIR FRANCE-KLM HORIZONS

AIR FRANCE-KLM HORIZONS in theSBF120. Shareholders’ Meeting the Gold Award for theBest magazine awarded theGroup choices. In2016, Le Revenu performance andstrategic to decipheringtheGroup’s the information that iskey provides itsshareholders with transparency, AirFrance-KLM in theFrench provinces… Intotal ACTION’air newsletter, meetings A website, thededicated float Free 75.7% OUR SHAREHOLDERS ENGAGING WITH Breakdown ofthesharecapitalatDecember31,2016 OF THE SHARE CAPITAL SHARE THE OF

BREAKDOWN BREAKDOWN Treasury stock 0.4%

scenes insight into thecompany. events givingthemabehind-the- regularly invited to exclusive the Shareholders’ Clubare also management. The members of also meets theGroup’s Group’s financialcommunication, quarter to contribute to the Committee, which meets every An IndividualShareholders’ airfranceklm.com FIND OUT HOW TO JOINTHECLUB AT Employees 6.3%

French State 17.6%

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS Air France-KLM brooks nocompromise. Then comessustainable development: like theBoeing 787, which ismore fuel leader inthebenchmark DJSIranking. and resources to developing solidarity It isalsoinvesting innew-generation there are three imperatives onwhich Firstly flight safety, which isalways the Group was againnamedAirline Lastly, both AirFrance andKLM being evaluated andoptimized aircraft which deploy multiple devote agreat dealof energy OUR COMMITMENTS for thetwelfth year running, where theGroup is present. projects inallthecountries efficient and less polluting. Across allitsbusinesses, everywhere intheworld. sustainable solutions, SUSTAINING

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS Engineering &Maintenancedivision. Maintenance professionsandwillbeextended toallstaffintheGroup'sAFIKLM approach. Itisaimedatthemanagers andmechanicsinthevarious Aircraft TRAINING PROGRAM A NEW“AIR SAFE” factors hasbeencreated. Industries, anew training program targeting humanrisk For example, following theMaintenance LOSA withinAirFrance These diagnostics thenlead to concrete action plans. campaign during2016intheaircraft maintenance business. ground. The latest example to date: the420-observation All theGroup’s professions are concerned, intheairandon conditions, leading to thedefinition of anadapted action plan. The principal: trained operational staff observingreal workplace process dubbed LOSA (Line Operations Safety Assessment). For several years, theGroup hasdeployed acontinuousimprovement corporate culture. Flight safety isanabsolutepriority, enshrinedintheAirFrance-KLM PRIORITYA KEY SAFETY, Flight safety situations andhumanerror,usinganin-field-appropriate strategies whendealingwithpotentiallyhazardous This trainingprogramenablesparticipantstodevelop

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS THE INDUSTRY A FRONT-RUNNER IN SUSTAINABLE DEVELOPMENT: companies intheworld,eachtheirown sectorofactivity. for theirsustainability. TheGroupthusranksamongstthe58most responsible COMMITMENT A RECOGNIZED sustainable biofuels for airtransportation. an integral of itsoperations part anddeveloping alternative is mobilized around makingtheprinciples of thecircular economy contribute to local development. More specifically, thegroup reinforce themotivation andprofessionalism of itsstaff and environmental impact, offer responsible products andservices, Air France-KLM innovates onadaily basisto reduce its Air France-KLM istargetinga20%reduction initsCO Environment Index, themaininternationalindexevaluating companies leader ofthe“”categoryinDow JonesSustainability For thetwelfth yearrunning,AirFrance-KLM wasnamed csrreport2016.airfranceklm.com/en/ 2 emissionsby 2020.

FOR MORE, GO TO TAKES CARE AIR FRANCE-KLM Corporate Social Responsability

Report 2016

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS SOLUTIONS A HOST OF SUSTAINABLE THE DREAMLINER, THE 787 HIGHPOINTS OF enable theaircraft to berecycled at theendof theirlives. for aneven more comfortable flight. Advanced procedures also Improved cabinpressurization andahigherlevel of humiditymake larger, are equipped withanelectro-chromatic dimmingsystem. emissions are attenuated while theportholes, which are some30% emissions anda20%saving onfuel consumption. Inthecabin, noise structure andexcellent aerodynamics. The result: areduction inCO benefit from new engines, alight composite materials-based Dreamliners which now belong to theAirFrance andKLMfleets environmentally-friendly aircraft to date. For example, the veritable host of innovative technologies, makingitoneof themost and safety equipmentinthemarket; italsobringstogether a The Boeing787doesn’t just offer thehighest standards of comfort Air France's first Boeing787. Boeing 787, anew-generationaircraft • AsignificantreductioninCO • A20%savingonfuel consumption relativetoolderaircraft. • A30%increaseinportholesizerelative tosimilaraircraft. 2 (around20%)andnoiseemissions. 2

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS YOUNG KENYANS SUPPORTING local projectheadstotraveltheNetherlandsmeetpotentialdonors. frequent flyerprogramcandonatetheirmilestotheassociation.Thisalsoenables VOLUNTEERS FREE MILES FOR in far-flung villages. in theirhomes. Information andadviceinitiatives are alsoorganized a school andashelter for young girlsthreatened withmutilation the Dutch SamenSuccesFoundation, theassociation co-financed and medicaltreatment. For example, at West Pokot inKenya, with supported more than650projects linked to education, housing to set uptheWingsofassociation Support which hassubsequently in countriesthey visited regularly. They thencametogether First camethedetermination of KLMstaff to helpvulnerable children Taking careofyounggirlsinKenyaisjustonetheWingsSupportmissions. KLM Takes Care developed, KLMcustomers belongingtothe FlyingBlue To helpthemgettocountrieswheretheprojectsare Wings ofSupportnow numbers morethan 90volunteers. klmtakescare.com FOR MORE, GO TO

AIR FRANCE-KLM COMMITMENTS

AIR FRANCE-KLM COMMITMENTS A CHILDHOOD DREAM… A JOB ASAPILOT, In total,theFoundation willthussupport81associationsin37countries. CHILDREN STANDING ALONGSIDE FOUNDATION, THE AIR FRANCE the children to forget theirillnesseswithsomehappy moments. with theUnMaillotPour La Vie association, thisoperation enabled by theAirFrance Foundation andthestation staff inpartnership airport, includingapilot-guided visitto anAirbusA330. Organized Hospital gainedabehind-the-scenesview of Paris-Charles deGaulle In 2016, 17sick children intheMargency (Val-d’Oise) Childrens’ for morethan24years. The AirFrance Foundation hasbeenmakingsickchildren'sdreamscometrue Air France Foundation

and IndianOceanregions,2inEurope19France. 11 inLatinAmerica, 17inAsia, 6intheCaribbean children. 29projectswillberealizedinAfrica, 84 projectstoassistvulnerable,disabledorsick In 2016-17,theAirFrance Foundation willsupport fondation.airfrance.com FOR MORE, GO TO

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE the menandwomen of AirFrance-KLM, tools enablingthemto meet customer OFFERING THE VERY BEST is alsodeploying aprogram focused who are committed to offering their of theGroup. They now have mobile needs more effectively andrapidly. high standards: thoseachieved by Excellence meansmaintaining The wealth andqualityof their expertise are thevery essence To go further, AirFrance-KLM customers only thevery best. on behavioral excellence.

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE SERVICE A MORE ATTENTIVE (1) InferenceOperationssurvey –ViséoCI. award for customer service HOP! AirFrance won the2017ÉluServiceClient HOP! AirFrance industry inAmsterdam, organized by Travmagazine . the Reisgala, anannualevent dedicated to thetravel For itspart, KLMwas namedBest Airlineduring KLM for the Transport sector. BearingPoint-Kantar TNS, Customer Relations Podium, consecutive year, theairlinealsowon first prize inthe lounge diningexperience. For thesecond won theSkytrax award for theWorld’s Best lounge at Paris-Charles deGaulle thus airport For thethird year running, AirFrance’s LaPremière Air France particularly onthe ground. to attentiveness to customer needsat alltimes, in the “Airlines” category. Anaward testifying two of Fortune’s World’s MostAdmired Companies, In 2017, AirFrance-KLM was ranked number Air France-KLM passenger transportation” category. A Groupattheserviceofcustomer (1) inthe “collective

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE AIRCRAFT OF NEW-GENERATION AT THESERVICE UNRIVALED EXPERTISE the region. theA350operatorssupporting inChinaandacross like its new logistics center inShanghai, aimedat AFI KLME&Misalsodeploying alocalized network, Localized services belonging to AirCaraïbes Atlantique.the A350s thus signedtheworld’s first contractfull support for entry into operational servicesupport. The company maintenance, to airframe andcomponentsupport, and an end-to-end serviceoffer ranging from inline comprehensive inthemarket ontheA350, including a range of solutions which are amongst the most dedicated to the A350. AFIKLME&Mnow offers Maintenance, Repair &Overhaul servicesproposition It hasalsoconsolidated andexpanded its A comprehensive range of solutions the A320neo, theBoeing737MAX andtheGEnxengine. reinforce itsmaintenance capacityontheBoeing787, aircraft. In2016, thecompany thuscontinued to global player inthemaintenance of new-generation itspositionasamajor (AFI KLME&M)isaffirming Air France Industries KLMEngineering&Maintenance A majorMROplayer AFI KLM E&M

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE PREDICTIVE MAINTENANCE OVERHAUL: INNOVATION FOR MAINTENANCE AND of areduction inoperational disruption. been reflected inpromising results in terms developed. The deployment ontheA380hasalready predictive maintenance solutionshave been and anticipate therisks of failures system, viaanalert To monitor aircraft performance onareal-time basis Predictive solutions models andprocesses. new-generation aircraft, to improve themaintenance using thevast quantitiesof data generated by Prognos, arange of ground-breaking solutions The MROLabhasenabled theGroup to develop for new-generation aircraft Prognos, servicesolutions open to partners. numerous R&Dcenters andanextensive ecosystem in-house program of participative innovation, this initiative acts asthelinkbetween anambitious innovations andnetwork of affiliates. Concretely, of convergence for allitshigh-added-value AFI KLME&Mhasdeveloped The MROLab, apoint High-added-value innovation AFI KLM E&M

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE VALUE SERVICES CARGO: HIGH-ADDED- for employees. and to deploy arange of more flexible mobile tools to fluidifythetransit of merchandise ontheground it notably enables AirFrance-KLM Cargo The samedigitaladded-value at theoperational level: notably theircurrent bookingsandpast shipments. comprehensive personalized control panel, displaying At thenew myCargo portal, customers alsohave a Mobile tools transport capacity andplacetheirshipping orders. enabling customers to instantly identifytheavailable and Quote &Book, aninventory andbookingtool on thestatus of theirconsignments(Track & Trace) the option for customers to receive real-time alerts launched by theGroup in2016like, for example, solutions. Several digitalinnovations were new servicesto add valueto itsmerchandise shipping Air France-KLM Cargo Martinair isalways introducing the transport solutions Digital servicesto enrich Air France-KLM MartinairCargo

AIR FRANCE-KLM EXCELLENCE

AIR FRANCE-KLM EXCELLENCE IN THESKY TRANSAVIA and personalized. of promises and serviceexcellence: professional mentioning numerous criteria like thefulfillment Service Award inthe “Airlines” category, withcustomers In theNetherlands, Transavia alsowon a2017Best Yet another award… of itscabinsandthewealth of inflight entertainment. airlines ondeparture from Paris-Orly for thecomfort Transavia alsofigures amongst the top three low-cost and thequalityof theinflight catering proposition. thethoughtfulnessin particular of thecrews who gave thecarrier thehighest scores, appreciating benchmark ranking. Itwas thepassengers themselves the best European budget airlineintheFlight Report For thesecondyear running, theairlinewas voted Transavia continuesto take off… The low-costairline

AIR FRANCE-KLM DESTINATIONS Minneapolis (Minnesota)–

AIR FRANCE-KLM DESTINATIONS or beintoxicated by theexotic perfumes the seven-colored inMauritius. earths whale sharkinthetranslucent waters enabling you to swim withaharmless In 2017, theGroup isthusproposing in Tivat’s luxuriant botanical garden and 44 in short- andmedium-haul,and 44inshort- network of more than80partners. is always adding to itsworld-wide you everywhere, AirFrance-KLM whether for businessorleisure. of theMaldives orcontemplate in Montenegro. To accompany Air France-KLM isconstantly you canclimbto ’s majestic castle inSlovenia nine new long-haul routes offering new destinations, If themoodtakes you, TEMPTING YOU TO TRAVEL

AIR FRANCE-KLM DESTINATIONS Faafu Atoll–Maldives

AIR FRANCE-KLM DESTINATIONS THE ENCHANTRESS MALÉ, activity occupying onefifth of thearchipelago’s work force. fish-abundant waters, fishing remainsa veryimportant coral reefs… aglimpseof paradise. Thanks to itswarm, expanses of white sand, thewealth of themulti-colored crystal-clear sea, thecaptivating beauty of endless to someenchanting places. Turquoise lagoons and For amilliontourists ayear, Malé isalsothegateway a Boeing777. • Travel onboard November 1,2017. by AirFrance from de Gaulleoperated from Paris-Charles • 2flightsaweek THERE GETTING than 1,000islandsscattered over nearly 90,000km and cultural center of acountrycomposedof more of theMaldives, Malé istheeconomic, commercial in theback streets of Malé. Asthecapital bountiful markets… Itiswell lingering worth awhile Brightly-colored buildings, welcoming tea houses, N Maldives ew

The largest fish The largestfish a whaleshark. Swim with TO DOLIST plankton. and eatsonly 10 meters long measures around in theworld

only 202areinhabited. Maldives archipelago, composing the Of the1,199islands TONEED KNOW 2 .

AIR FRANCE-KLM DESTINATIONS Rodrigues Island,Mauritius

AIR FRANCE-KLM DESTINATIONS THE MULTI-CULTURAL MAURITIUS, as ofOctober30,2017. partner AirMauritius operated by airline 2 to3flightsaweek and, inthesummer, operated by KLM Amsterdam-Schiphol a weekfrom • Inwinter,3flights THERE GETTING warm welcome andthehospitalityof itsinhabitants. Africa, IndiaandChina. The islandisalsoknown for its cuisine marries awealth of flavors from Europe, statues andbas-reliefs. The deliciousMauritian colored temples, festooned withaprofusion of frescos, Former colonial buildings rub shoulders withvividly- influences, as testified byitsmuseumsand traditions. and Britishinthepast, theislandisrich withmultiple Having beensuccessively Portuguese, Dutch, French scenery to go outandexplore other treasures. the setting of thelagoon… You needto traverse this of sumptuous beaches, theluxuriant vegetation, beauty of thelandscape, theinfinite reach In Mauritius, thevisitor isenchanted by theunreal N Mauritius ew

TO DOLIST the summer. and anAirbusA340in Boeing 787inthewinter • Travel onboarda an ancient continent an ancientcontinent the existenceof Scientists discovered TONEED KNOW a fascinatingspectacle. form ofvegetationoffer and strippedofany erosion ofvolcanicrocks originating from the Chamarel. Itsdunes colored earthsat Contemplate theseven-

than today. closer toeachother which weremuch Madagascar andIndia, the linkbetween Island. Itwasformerly Mauritius andRéunion years buriedbeneath dating back200 million

AIR FRANCE-KLM DESTINATIONS Ljubljana – Slovenia

AIR FRANCE-KLM DESTINATIONS THE WESTERN BALKANSTHE WESTERN EXPLORING by Transavia. Schiphol, operated from Amsterdam- • 3flightsaweek (SLOVENIA) LJUBLJANA GETTING THERE and itssacred monuments. With aspecialmentionfor theIslandof Flowers on excursions to oneof itsmagnificent local islands. captivated by itsscenicroads andembarking with super-yachts. More andmore tourists are being bedecked withelegant buildings andpopular has beentransformed into anultra-modern marina, Tivat, thesurprising. At Tivat, theformer naval base there we are inRome. with theDragon Bridge. Here we are incentral Europe, a sumptuous Baroque church. Then it’s Nouveau Art Seconds after, looming just around thecorner, with cobbled lanes, themedieval style predominates. with countless surprisesinstore. Intheold center Ljubljana, theseductive. Ljubjanacharms itsvisitors N Slovenia, Montenegro ew

a Boeing737. • Travel onboard

(MONTENEGRO) TIVAT GETTING THERE a Boeing737. • Travel onboard operated by Transavia. from Paris-Orly, • 2flightsaweek N ew

AIR FRANCE-KLM DESTINATIONS Montpellier –France

AIR FRANCE-KLM DESTINATIONS (1) Source:www.net-investissement.fr and Nice. Bordeaux, Marseilles to , the 4 existingroutes service supplements This new Navette HOP! AirFrance. operated by from Paris-Orly, flights aday • 10 THERE GETTING and innovation quarterscheduled to openby 2020. And tomorrow, withthenew LaMogère business Bofill, today withthenew EcoDistrict.Port-Marianne its neo-classicalarchitecture dreamed upby Ricardo to thesea, yesterday withtheAntigone district and Little-by-little, it is gainingground andmoving closer growth rates inthecountrysince1990s. one of thestrongest demographic andeconomic largest pedestrian zone inFrance? The cityhasseen study there? The charm of thehistoric center, withthe energy of the70,000students whohave chosen to climate? The wealth of itscultural life andtheinfectious of thenearby Mediterranean? The deliciously balmy Montpellier ismagnetic… Isitthedazzlingbrilliance THE MAGNETIC MONTPELLIER, N Navette France ew

to contemporary. ranging from classical than 800worksofart, collection ofmore and hometoafabulous or CRJ1000. A320 an AirbusA319, • Travel onboard inhabitants some 1,000new Montpellier gains • Everyyear, TONEED KNOW spanning 9,200m renovated MuséeFabre, • Visit themagnificently TO DOLIST (1) .

2

REGIONS THE FRENCH FROM MEDITERRANEAN AND THE EUROPE Marseilles andNice. , Biarritz, mainly boundfor HOP! AirFrance, operated by transverse services of 51seasonal can alsotakeone to remaininFrance Those wishing and Toulouse. Montpellier, Nice Castres, Marseilles, from Bordeaux, on departure destinations routes tointernational of 10new seasonal there isachoice During Summer2017,

AIR FRANCE-KLM DESTINATIONS Guangxi Autonomous Region – China

AIR FRANCE-KLM DESTINATIONS FOR NEWDESTINATIONS EXPANDED PARTNERSHIPS (1) Non-exhaustivelist:AirFrance-KLM hasmorethan80partners world-wide. •  • Middle East: , • Africa: , AirMauritius • SouthAmerica : Argentinas, Aerolíneas GOL • Central America: , CopaAirlines America:• North DeltaAirLines, WestJet Airlines •  A round-the-world tripof ourmainpartners more than1,000destinations in177countries. two global allianceregrouping 20airlinesandserving been afounder memberof SkyTeam, thenumber For thepast sixteen years, Air-France KLMhasalso trans-Atlantic network, to thebenefit of itscustomers. Delta AirLines significantly enriches theGroup’s and ChinaEastern Airlines. The joint-venture with Airlines, theIndiancompany its partnerships with thePanamanian carrier Copa In 2016, for example, theGroup expanded to offer itscustomers new destinations to explore. Air France-KLM continuesto forge new alliances Xiamen Airlines. Jet Airways, , Airlines, Airlines,China Southern , Asia : ChinaAirlines, ChinaEastern Airlines, TaromAirlines, ; Czech Europe : , AirEuropa, , Alliances ; ; (1) ;

; :

;

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate n°8 AIR FRANCE-KLM TRENDS start-ups. This dynamic isalsoreflected emails withfriendsorcustomers during the deployment of numerous innovative of airtransportation by collaborating in permanently designingandproposing a plethora of innovative andexclusive travel. Passengers cannow exchange ground-breaking servicesto simplify Air France-KLM leverages thepower to save timeandgainpeaceof mind. innovative solutionsinthevanguard THE DIGITAL PLEASURES particular withavast ecosystemparticular of of digitalby offering itscustomers at of thevery theGroup heart by Air France-KLM iscommitted to offer of inflight entertainment. flights andenjoy an expanded They have fingertip access to applications enablingthem digital tools for employees. CULTIVATING

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate n°8 AIR FRANCE-KLM TRENDS Booking andcheck-in confirmations, boarding cards, its digitaltools to improve thecustomer experience. Facebook Messenger. The Group isalways adding to teams dedicated to thesocialmediadirectly using Customers willalsobeable to contact theairline originating from itsCustomer PriorityHackathon KLM thusorganized theDutch OpenHackathon now accessinformation anddocumentslinked Air France isdeveloping innovative solutions flight status, etc. All thisinformation willbe As of 2017, AirFrance-KLM passengers can in cooperation withlarge Dutch companies. easily accessible andavailable at any time. initiative ontheflight disruption theme. to theirtravel viaFacebook Messenger. ENHANCES TRAVEL WHEN DIGITAL Ground-breaking digitaltools

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate no.8n°8 AIR FRANCE-KLM TRENDS it comesto offering additional servicesand developing Schiphol airport and9,500staffSchiphol onboard airport aircraft have to equipitspilots withdigitaltablets. Three years on, and at seven French andseven airports international In 2011, AirFrance becamethefirst European airline with detailed, relevant andpersonalized information to beequipped, enablingthemto provide customers it was of theturn the3,700hostesses andstewards on, for example, flights ortheirluggage, in real time. to ground staff at theParis-Charles deGaulle hub, this process. Nearly 4,500have thusbeenissued also beengiven tablets. Aninvaluable tool when stations. All KLMfront-line staff at Amsterdam- In 2016, AirFrance-KLM further accelerated ULTRA-CONNECTED a proactive andattentive relationship EMPLOYEES with each customer.

Mobilized teams

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate n°8 AIR FRANCE-KLM TRENDS a Wi-FiPass directly ortablets ontheirsmartphones to hiscustomer before landing, orthosejust wanting their Dreamliners. Passengers just needto purchase or for ultra-connected geeks… AirFrance andKLM during theflight. Next step: theequipping of 124 a partnership withGogo, theglobal aeronautics offer alltheircustomers Wi-Fiaccessonboard industry’s leading provider of inflight internet With thisinmind, AirFrance-KLM hassigned of theGroup’s aircraft, asof theendof 2017. CONNECTING THESKY to sendanemailto afriendfrom thesky, For anentrepreneur whoneedsto reply and entertainment.

On-board Wi-Fi

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate n°8 AIR FRANCE-KLM TRENDS 16 to enable passengers to make themost of thistime. download theirfavorite press titles 24hours before the airline’s customers easy accessto achoice of international and4Dutch daily newspapers directly on their smartphones andtablets.on theirsmartphones They canalso also enables customers to watch afilm, cartoon their European orintercontinental flights. Same possibility ontheAirFrance Press app, which or television program, eitheron-oroff-line. Air France-KLM isenriching andexpanding For example, thenew KLMMediaapp gives have sometimefor themselves, when they On board anaircraft, passengers at last its press anddigitalleisure proposition are free to relax, read ordream. IS SUSPENDED LIKE TIME

An enricheddigitalproposition

AIR FRANCE-KLM TRENDS

Departures Arrivals 10 8

Gate n°8 AIR FRANCE-KLM TRENDS business accelerator, Start Tech Factory, alsosupports E-SERVICES ARE TAKING OFF of anopeninnovation-based approach, theAirFrance is delayed, AirFrance offers itspassengers analert for anItalianrestaurant, to receive theinformation system viatheairline’s app, enablingthemto track showing what they are seeking, like asliceof pizza the search following alost baggage report. As part they just forward aniconviaFacebook Messenger the casefor which Lineberty offers queue asmart instantly. For itspart, in theevent theirbaggage an innovative digitalserviceto helpcustomers management system inAirFrance agencies. For example, KLMhaslaunched an “Emoji”, of new digitalservicesto simplifythelives some hundred every start-ups year. This is of itscustomers before andduringflights. ON THEGROUND TOO, find their way around anunknown place: Air France-KLM isdeploying arange

Innovative digitalservices

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE exclusively for theGroup's customers, greatest chefs to tantalize allpalates. are beingtransformed andupgraded personalized services are reserved adapted to allbodymorphologies. by meeting theirspecificdesires of exclusive attentive gestures… At theairport, Businesslounges passengers. New practical and to satisfy themost demanding Ever-more-comfortable seats, individual care of customers Signature menusfrom the How sweet itisto receive everywhere intheworld. TO DELIGHT YOU Air France-KLM takes a constant stream and expectations.

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE HOSPITALITY THE ART OF LOUNGE multiplied five-fold to spansome730m in terminal 2G, whosefloor area hasbeen ambition for thenew AirFrance lounge At Paris-Charles deGaulle, thesame class customers onintercontinental flights. exceptional experience for allBusiness technologies, etc. The promise of an spaces: new services, new design, new completely revisited withmore generous unveiled in2018. The lounge hasbeen of thenew KLMCrown lounge willbe At Amsterdam-Schiphol, thefirst section 350 m space alsowelcomes young travelers: terminal 2E, anew KidsSolo connecting passengers feel at home. InhallL of and connected spaceimmediately makes Evoking French-style elegance, thiscosy for theyoungest. mini-football, areading area andarest room

The AirFrance-KLM lounges 2 witharoom for videogamesand 02

2 .

02 03 01    Charles deGaulle. lounge atParis- new AirFrance pleasure inthe and sensual Reading, calm Schiphol. Amsterdam- lounge at KLM Crown inthefuture of largespaces, The tranquility appetite. to satisfy every French cuisine pleasures of the timeless Pastries and

03 01

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE SURPRISES WONDERFUL DREAMING UP of itsDutch houseinDelftware. Business Classpassengers withanew edition ago, thecompany alsopresented World As inevery year sinceitscreation 97years celebrating aspecialevent like an anniversary. a range of smallgiftsfor passengers whoare For itspart, KLMhaslaunched Giftsfor Care, This initiative isanairlinefirst. private sales dedicated to exceptional travel. website, which offers French internet users like thenew www.lacollection.airfrance/fr Exclusive attentions especially for them, endeavors to offer themwonderful surprises. To pamperitscustomers, AirFrance-KLM

A personalizedservice

02 01   must have. the KLM Delftware, house in The Dutch travel. exceptional to access website A new unique

02 01

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE combining pleasure, elegance andrelaxation. outstanding experience harmoniously practical andinnovative functionalities for an support. Withoutforgetting numerous with more comfortable foams andlumbar rows, seat cushionswidenedby 2.5cmmade a rigidshell, 5cmof extra spacebetween the comfort: anew seat reclinable to 130°within cabin by introducing thehighest standards of Air France hasrenewed itsPremium Economy up to twicethelevel of recline. offering upto 10cmmore leg-space and also benefit from extra-comfortable seats, forsupport maximumcomfort. Customers seats ergonomically equipped withalumbar Boeing passengers. For example, onboard its aircraft seats to offer thebest to its Air France-KLM regularly reinvents its seat, like ajourney withinajourney… Sinking into aninviting andgenerous REVERIE INVITING SEATS

Comfort andwell-being 777s, KLM’s Economy Classhas

02 01  well-being. well-being. designed for Economy seats, new Premium Air France’s . in KLM’snew moments Relaxing

02 01

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE sommelier, for flights operated by KLM. flights and by Thérèse Boer, accomplished sommelier in2013–onboard AirFrance by Paolo Basso–voted theworld’s best connaisseurs: anin-depth selection The winelist willcharm even thegreatest the Dutch chef withthree Michelin stars. delicacies imaginedby Jonnie Boer, traveling inWorld BusinessClasssample the Michelin stars intheworld. KLMcustomers Joël Robuchon, thechef withthemost of theServairCulinaryStudio, headed by Wilson inGeneva. The latter willbetheguest kitchens at thefive-star Hôtel Président by thechef Michel Roth, incharge of the appreciate theexceptional menusdevised Air France’s Business passengers willthus flavours in thesky. Inspring2017, taste buds, asthey are regaled by athousand Discovery after discovery for gourmet OF FLAVORS A FLIGHT

Gastronomy

01

02 03 01   to travel. an invitation dishes are Multi-colored finest detail. down tothe plate, orflavor composing a Chef MichelRoth L passengers. KLM taste budsof scintillating the Thérèse Boer Jonnie and

02 03

AIR FRANCE-KLM TAILOR-MADE

AIR FRANCE-KLM TAILOR-MADE programs inEurope. is now oneof theleading frequent flyer 100 partners from other sectors, Flying Blue Bringing together 38airlinesandmore than using theMiles that they have earned. with KLMcanpay for theirinflight purchases in theair. Since2016, passengers traveling value innovative servicesontheground and companies which are creating highadded- development of thesepromising young An effective way to theinternational support to selected start-ups by theGroup. and services, they cannow donate them them into new airlinetickets or goods for each journey andtheoption of converting members. Over andabove theMiles earned being revisited to satisfy its27million The Flying Blueloyalty program isalways FLYERS FREQUENT FOR OF CHOICE ATTENTIONS FlyingBlue

02 01   Flying Blue card. Flying Bluecard. using a purchases inflight Paying for Flying Blue card. Flying Bluecard. To eachtheir of traveling. own way To eachtheir

02 01

AIR FRANCE-KLM JOKER A PILOT TAKES CARE OF THEPRESENT ON THE FUTURE ON AN ASTRONAUT WORKS WORKS ASTRONAUT AN

JOKER JOKER A pilot reaching for thestars

is usedto flying theAirbusA320, thistime of alifetime. Aformer AirFrance pilot who he isonboard aSoyuz spacecraft bound

extraordinary voyage, theexperience

destination: theInternational Space

for afascinating andmuch farther embarked onan at analtitudeof around 400km… Station inorbitaround theearth

On November 17, 2016, and from and from Espace Espace de Toulouse. Bio express

up in the ensuing years. the a six-month period in 2016. period a six-month

international space mission for space mission for international

on commercial aircraft notched notched aircraft on commercial

Ecole the Ecole from graduates • 2001: • 2014: assigned to the ‘’Proxima’’ ‘’Proxima’’ the assigned to • 2014:

• 2006: licensed as a commercial pilot pilot licensed as a commercial • 2006: program. More than 2,300 flying hours hours than 2,300 flying More program.

• 2009: selected to become an astronaut an astronaut become to selected • 2009: having followed Air France’s flight training training flight Air France’s followed having and training at the European Space Agency. the European at and training Nationale Supérieure Aéronautique

JOKER