In 2004 Air France and KLM Royal Dutch Airlines joined forces to become the Air France-KLM Group
(AF-KLM). With the two historic airlines' fleets and operations combined, the conglomerate has
become one of the largest European airline groups along with Lufthansa Group, IAG, and Ryanair.
In its nearly two decades of existence, the partnership hasn't always been smooth - and
the two airlines still have their differences, despite cooperating quite closely. Today, we
examine the state of Air France-KLM, and what the future holds for the two main parts of this group.
As noted by the official group website, both Air France and KLM have retained their own respective
individual identities, trade names, and brands. The group also includes low-cost brand Transavia
- which technically consists of two airlines: Transavia France and Transavia Netherlands).
The three core businesses within the group are as follows:
Passenger Business Cargo
And Engineering & Maintenance
This analysis and explainer will focus primarily on the passenger side of operations.
Both carriers run their own operations from their respective hubs located at Paris-Charles de Gaulle
and Amsterdam-Schiphol. It should also be noted, however, that the low-cost brand in the group,
Transavia, also has bases located across France and the Netherlands.
In France, Paris-Orly is among the largest, but flights also operate out of Lyon and Nantes, among
several other French airports. In the Netherlands, Transavia also operates numerous flights out of
Amsterdam but has significant Dutch operations at the airports of The Hague and Eindhoven.
As we've seen with other airline groups, the size of combined operations allows for better
purchasing power with aircraft manufacturers. Bulk orders can be placed, and volume discounts
can be obtained from OEMs like Airbus and Boeing. At the same time, transferring
aircraft (or aircraft orders) between airline members of the group comes much more easily.
A prime example of this as it relates to AF-KLM is the shuffle of Airbus A350s ordered by KLM
and Boeing 787s ordered by Air France. The swap, as reported in 2019, saw Air France receive all
of KLM’s A350 orders, while the Dutch carrier took all of Air France's remaining 787 orders.
While it's clear that the cooperation of the two airlines is beneficial from a
business and profitability perspective, how does this partnership benefit passengers?
Those that frequently fly with one or both of these airlines will see that flight itineraries
on offer demonstrate the integration of Air France and KLM flights and operations. If you're flying
out of Amsterdam with KLM, but the airline doesn't serve your end destination, you'll be
offered a connection at Paris Charles de Gaulle. It's a similar situation for residents of Paris,
as booking with Air France may see a connection at Amsterdam Schiphol with onward service operated
by KLM. This ultimately sees the two carriers operating numerous flights between the two hubs.
Current FlightRadar24.com data shows up to eight flights per day - four operated by each airline.
While being two distinct airline brands, the two carriers also share a joint loyalty program
for frequent flyers. Called “Flying Blue,” AF-KLM notes that it was the "first time in history that
two European airlines combine[d] their loyalty programs." For frequent flyers and those loyal to
one airline, the single loyalty program provides more options to earn and maintain elite status.
The 'one group, two airlines' approach is certainly retained when it comes to
the current fleet composition of the two mainline carriers,
as there are big differences in the aircraft types operated.
When it comes to commonalities, the airlines currently operate a number of shared types:
Boeing 777 Boeing 787
Airbus A330 and Embraer E-Jets for regional subsidiaries
Despite these common types, each airline has their respective differences:
KLM operates the Boeing 737 while Air France does not.
Air France operates the A350, A220, and A320 family of aircraft, while KLM does not.
With the two full-service carriers being French and Dutch, you would expect the
travel experience to at least have a few differences. On the surface, one of the
largest differentiators is that Air France offers a first class (La Première), while KLM does not.
And, while Air France has had a premium economy cabin since 2009,
KLM only introduced an equivalent cabin - Premium Comfort Class - in 2022.
Of course, differences go beyond just class offerings, and so we asked some
of the airline group's most frequent flyers in an online message group about their thoughts
on how the two carriers differed. There were many inconsistencies in responses, which gave
a strong indication that passenger experience was heavily influenced by personal preferences,
as well as the specific cabin crew team working on a particular flight on a particular day.
While this survey was by no means scientific, some loyal AF-KLM travelers favored KLM,
while others (perhaps a slight majority) preferred Air France. These frequent flyers had a mix of
experiences in terms of elite status recognition, where Air France cabin crew were more likely to
pay special attention to Platinum-level Flying Blue members (even in economy class), while it
was the opposite for other travelers, as KLM crews provided more preferential treatment for them.
As another example, one contributor mentioned their preference for the KLM lounges in Amsterdam
Schiphol, while others noted that the Air France lounges at Paris Charles de Gaulle were superior.
For business travelers, one positive differentiator for KLM is the airline's unique
onboard 'souvenir' of Delft houses. Currently a collection of 103 different designs, these
miniature ceramic houses are filled with Dutch gin and are modeled after real Dutch buildings.
As noted by KLM, "these unique gifts have been around since the 1950s and are a true
collector’s item! You receive one when traveling in Business Class on an intercontinental route."
One of the most common distinguishing factors listed by travelers was inflight meal offerings,
as most AF-KLM frequent flyers cited Air France as having better food quality.
With general French culture having a reputation for serving fine food,
the country's flag carrier seems to have embodied the same passion. Indeed, numerous articles on the
internet praise Air France for having some of the best inflight meals in the industry.
In fact, just examining Air France press releases demonstrates the carrier's focus
on fine dining - particularly for its premium class passengers. Every few months
the airline seems to launch a new menu that has been crafted by Michelin-starred chefs:
In November 2021, meals were designed by French Michelin
star chefs Chefs Régis Marcon and Mathieu Viannay.
This was followed by another round of meals a few months later, also designed by French
Michelin star chefs. This time menus were craft by Chefs Michel Roth and Anne-Sophie Pic.
And, most recently, Air France announced that for 2023,
17 talented chefs have been selected to take turns creating exceptional
dishes in La Première and Business, and at the airline's airport lounges.
In its most recent food-related announcement, Air France stated that it was the quote "only
airline to partner with so many distinguished names in the world of cuisine [...] reasserting
more than ever its role as ambassador of French fine dining around the world."
Which 'perk' would secure your loyalty? Collectible, miniature
ceramic Dutch houses or a consistently gourmet inflight meal experience?
Anyone who has traveled through both the Netherlands and France will know that French
and Dutch cultures are quite different from one another. The same goes for the national
carriers of the two countries. A 2021 article by the Financial Times discusses the friction
that has existed between the two main carriers of the group. Noting that tensions have been
"bubbling for years," issues vary wildly from how money is spent to the independence
of the smaller KLM to operate freely as a Dutch airline, with a Dutch identity.
Discussing how the union of the two carriers is as much political as it is economical, the Dutch
government upset their French counterparts when, in 2019, it purchased a 12.68% stake
in Air France-KLM as a way to eventually match the 14.3% stake held by the French government.
The share purchase was designed to protect the Dutch government's interests in the national
airline and reportedly came after disputes regarding the direction of the airline group.
According to reports published at the time, members of the French government felt that the
deal was quote "more like that done by a corporate raider, rather than a state shareholder".
The turmoil around company control took a backseat as, in the following years,
the airline group would be rocked by the COVID-19 pandemic and its associated travel restrictions.
While the crisis may not have eliminated any underlying tensions and disagreements completely,
this shared crisis has shifted the focus of both airlines toward survival and recovery,
with cooperation being a necessity for this process. Indeed, the last notable piece of
news having to do with disharmony between Air France and KLM seems to be in 2019.
So what's the latest news when it comes to this airline group? Well,
it looks like the AF-KLM ambition to acquire some of its European competitors
is stalling. At the end of October 2022, we reported that the Portuguese government was
looking to privatize TAP Air Portugal, and that Air France-KLM CEO Ben Smith signaled
his company's interest in taking a stake in the Portuguese carrier.
Sadly, it's been several months, and still no developments on this front have emerged.
A similar situation has been taking place in Italy with ITA Airways, with AF-KLM also being listed as
a potential stakeholder in the carrier. However, as we noted in January, the group announced that
it wouldn't be pursuing this possibility, instead deciding to remain a close partner through the
SkyTeam alliance for now. This came a day after Lufthansa revealed that it would be pursuing a
stake ITA, formally submitting its offer to the Italian Ministry of Economy and Finance. It will
be interesting to see what the AF-KLM group will do to combat Lufthansa Group's rising dominance
across Europe - particularly as it IAG and the Ryanair group are also major forces to deal with.
On the more positive side of AF-KLM news, the first Air France Boeing 777-300ER equipped
with new and refurbished long-haul cabins took off from Paris on January 20th. This
is one of 12 777-300ERs to be refurbished and will see updated seating across all classes,
which will be fitted with charging ports, Bluetooth connectivity, and inflight WiFi.
Another thing to be looking forward to will be KLM's (and Transavia's) new Airbus jets. At
the end of 2021, the Air France-KLM group announced a firm order for 100 A320neos
alongside purchase rights for an additional 60 aircraft. Covering both the A320neo and A321neo,
the first deliveries from this order are expected in the second half of 2023.
With KLM being a fairly loyal 737 operator over the past few decades,
this shift to Airbus narrowbodies was definitely seen as a blow to American manufacturer, Boeing.
Ultimately, it's clear that based on fleet size,
fleet diversity, and onboard offerings, Air France is the more dominant partner
in the airline group. Reflecting on these major differences, it's understandable why
the Dutch government would have felt like it needed to secure more influence in the group.
Indeed, KLM seems to be playing 'catch-up' in terms of upgrading
its narrowbody cabins and introducing a premium economy cabin. The Dutch airline
would have also suffered some reputational damage with its Amsterdam Schiphol hub
experiencing severe travel chaos and imposing a multi-month passenger-cap.
Still, KLM has its own hardcore following, and many Dutch travelers are quite loyal
to the airline - whether or not they're collecting those little Delft houses!
To conclude, we'll have to ask another obvious question:
Of the two full-service airlines comprising the Air France-KLM group, which carrier do
you prefer flying with? Air France, or KLM? Let us know by leaving a comment!