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Air France-KLM

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis


This report about Air France-KLM is part of our analysis of the top 10,000 corporations in the world. We create and renew it at a fast pace to make sure the information is as up-to-date as possible.

If you are a Premium member, you have full access to the study on Air France-KLM, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential new products and/or services that are distinct from the sections requiring analysis, forecast upcoming market trends, and predict the potential synergies between Air France-KLM and other organisations.

Company Description

Air France-KLM is a major international airline headquartered in Paris, France. Founded in 2004, the company provides air travel, cargo services, and other related services to customers in Europe, the Americas, Asia, and Africa. Air France-KLM offers its customers a wide range of services, including flights, ticketing, baggage tracking, and online booking. The company also provides loyalty programs and promotional offers to increase customer satisfaction and loyalty.

Industry Overview

Air France-KLM is a global airline company that operates in the commercial aviation industry. The total global market size of this industry is approximately USD 844 billion, with over 2.7 million employees worldwide. The majority of these employees are based in the US, China, and Europe. Air France-KLM is the largest European airline and operates in over 300 airports across the world.

Industry Classification

In terms of formal classification, Platform Executive has tagged Air France-KLM as a business operating within the Airline and Air Travel industry.

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method for providing a passenger with information on the status of a flight
Patent ID: US10591787
Date: 2019-10-22

Patent Title: Method of providing, to a passenger, a customized travel experience
Patent ID: US10591786
Date: 2019-10-22

Patent Title: System for managing the selection of seats by passengers
Patent ID: US10591785
Date: 2019-10-22

Patent Title: Method for controlling the implementation of a service by a fleet of aircraft
Patent ID: US10591784
Date: 2019-10-22

Patent Title: Method for controlling the implementation of a service by a fleet of aircraft
Patent ID: US10591783
Date: 2019-10-22

Patent Title: System for providing a passenger with a personalised travel experience
Patent ID: US10591782
Date: 2019-10-22

Patent Title: Method for providing a passenger with information on the status of a flight
Patent ID: US10591781
Date: 2019-10-22

Patent Title: Method of providing a personalised travel experience
Patent ID: US10591780
Date: 2019-10-22

Patent Title: Method for managing the selection of seats by passengers
Patent ID: US10591779
Date: 2019-10-22

Patent Title: Method of providing, to a passenger, a customized travel experience

Major Products & Services

The main products and/or services commercialised by this business include the following:

  • Airline flights and related services
  • Cargo transportation services
  • Maintenance and repair services
  • Ground handling services
  • Airport lounge services
  • Inflight entertainment services
  • Vacation packages
  • Hotel bookings
  • Car rental services
  • Travel insurance services
  • Privilege and loyalty programs

Key Competitors

We have identified the following organisations as being key competitors:

  • Lufthansa Group
  • Delta Air Lines
  • United Airlines
  • American Airlines
  • British Airways
  • IAG
  • Emirates
  • Etihad Airways
  • Qatar Airways
  • Turkish Airlines
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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Employees: Air France-KLM has a large workforce of over 75,000 people, including pilots, cabin crew members, ground staff and office workers.

2. Customers: Air France-KLM’s customers are the passengers who fly with the airline and use its services.

3. Suppliers: Air France-KLM works with a range of suppliers, including airport authorities, aircraft manufacturers, catering companies, travel agents, and other service providers.

4. Shareholders: Air France-KLM is a public company and has a large number of shareholders who invest in the company and expect returns on their investments.

5. Governments: Air France-KLM operates in a

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Air France-KLM different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Air France-KLM and its position within the marketplace.

Air France-KLM is a global airline with a strong presence in Europe and North America. The company offers a comprehensive range of services, including passenger and cargo flights, charter services, and travel products. Air France-KLM is a founding member of the Oneworld airline alliance and provides service to more than 150 destinations in more than 50 countries.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Network: Air France-KLM has a large network of both domestic and international destinations, allowing them to offer customers a wide range of travel options.

Fleet: Air France-KLM has one of the world’s largest fleets of modern aircraft, which allows them to offer efficient and comfortable flights.

Loyalty Program: Air France-KLM has a loyalty program that rewards customers with points for each flight taken and can be exchanged for discounts or free flights.

Service: Air France-KLM has a reputation for providing excellent customer service, which customers appreciate and often leads to repeat business.

Reputation: Air France-KLM has a long history and a well-established reputation for providing quality service, which adds to its competitive advantage.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

  • Business travelers
  • Leisure travelers
  • Groups
  • Families
  • Corporate clients
  • Government and diplomatic customers
  • VFR (Visiting Friends and Relatives) travelers
  • Freight customers
  • Airline alliance partners
  • Airpass customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Key Market Trends
Environmental Sustainability: In recent years, sustainability has become a major focus for companies, and the airline industry is no exception. Air France-KLM needs to focus on reducing its carbon footprint and other environmental impacts to remain competitive in the market. This could include investing in more fuel-efficient aircraft, using renewable energy sources for operations, and developing green initiatives for customers.

Consolidation: Global consolidation in the airline industry has been growing in recent years, as carriers look to reduce costs and increase efficiencies. Air France-KLM will need to stay competitive by monitoring and responding to changes in the industry, such as mergers and acquisitions of other airlines.

Technology: The airline industry is becoming increasingly reliant on technology, and Air France-KLM will need to keep up with the latest trends in order to remain competitive. This includes investing in technology to improve customer experience, such as mobile booking apps, automated check-ins and baggage tracking.

Low Cost Carriers: The emergence of low-cost carriers has had a significant impact on the airline industry, and Air France-KLM will need to respond to this trend by offering competitive prices and services. This could include introducing new routes and cutting costs through innovative measures such as unbundling services.

Key Performance Indicators

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Air France-KLM include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Financials

Key Personnel

Income Statement


Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Airport lounge access and amenities: Air France-KLM could offer airport lounge access and amenities to their customers, such as comfortable seating, complimentary drinks and snacks, complimentary Wi-Fi, charging stations, and other services that would make their airport experience more comfortable.

Online travel planner: Air France-KLM could create an online travel planner that would allow customers to easily map out their entire travel plans, including flights, hotels, car rentals, and more. The planner would be tailored to the customer's needs and preferences, allowing them to easily customize their itinerary.

Air France-KLM loyalty program: Air France-KLM could create a loyalty program that would reward customers for their loyalty and frequent use of their services. The program could include rewards such as discounted fares, complimentary upgrades, priority boarding, and more.

Destination packages: Air France-KLM could offer destination packages for their customers, which could include flights, hotels, and activities at the destination, all in one package. This would make it easier for customers to plan their trips and save money at the same time.

Air France-KLM mobile app: Air France-KLM could create a mobile app that would allow customers to easily book flights, check in, manage their loyalty accounts, and more, all from their mobile device.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Airbus: Air France-KLM is a major customer of Airbus, and the airline group also has a stake in the aerospace manufacturer.
2. Air Liquide: Air Liquide provides oxygen, nitrogen, and other gases to Air France-KLM, and the two companies have a long-standing relationship.
3. AirPlus International: AirPlus International specializes in business travel management and offers payment solutions to Air France-KLM customers.
4. Amadeus IT Group: Amadeus IT Group is a leading provider of technology solutions for the global travel industry, including Air France-KLM.
5. Alitalia: Alitalia is another major airline group with which Air France-KLM has a strong partnership.
6. KLM Royal Dutch Airlines: KLM is the Dutch arm of the Air France-KLM group and is a major partner of Air France-KLM.
7. SkyTeam: SkyTeam is an airline alliance of which Air France-KLM is a member, and the two companies work together closely.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries
The Porters 5 forces for Air France-KLM are:

1. Bargaining Power of Suppliers- Air France-KLM has a HIGH bargaining power of suppliers as it is one of the largest airlines in the world.

2. Bargaining Power of Customers- Air France-KLM has a HIGH bargaining power of customers as it has a large customer base.

3. Threat of New Entrants- Air France-KLM has a HIGH threat of new entrants as it is a HIGHLY competitive industry.

4. Threat of Substitutes- Air France-KLM has a HIGH threat of substitutes as there are many other airlines in the market.

5. Intensity of Rivalry- Air France-KLM has a HIGH intensity of rivalry as it is a HIGHLY competitive industry.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

PESTLE Analysis

CATWOE Analysis


The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

  • Customers
  • Actors
  • Transformation process
  • World view
  • Owners
  • Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Air France-KLM's customers are travelers who are looking for a safe, enjoyable, and efficient flight experience. They are looking for the best value for their money and expect a personalised, pleasant experience.

Actors: The main actors involved in Air France-KLM are the customers, the employees (pilots, flight attendants, customer service representatives, etc.), the shareholders, the government, and other companies providing services to the airline.

Transformation process: Air France-KLM's transformation process involves providing a safe, enjoyable, and efficient flight experience to its customers while also providing a return on investment to its shareholders. The airline uses a variety of methods to achieve this, such as providing customer service training to its employees, investing in new aircraft and technology, and partnering with other companies to provide services.

World view: Air France-KLM views its customers as the most important people in their business. The airline seeks to provide them with the best possible flight experience, while also providing a return on investment to its shareholders.

Owners: Air France-KLM is owned by Air France and KLM Royal Dutch Airlines.

Environmental constraints: Air France-KLM must comply with government regulations and industry standards, and must also be mindful of environmental regulations. The airline must also take into consideration economic and political conditions, as well as changes in customer preferences.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Air France-KLM business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis


Below is a list of the strengths we have identified for the business:

1. Air France-KLM has strong global brand recognition and a large customer base.

2. The company has a strong financial position, with a strong balance sheet and a healthy cash flow.

3. Air France-KLM has a modern and efficient fleet of aircraft, and a well-trained and experienced workforce.

4. The company has a diversified business model, with a strong focus on both passenger and cargo transport.


Below is a list of opportunities we have identified for the business:

1. Increase revenue by leveraging the combined network of Air France-KLM: Air France and KLM have a combined network of 8,000 daily flights to 314 destinations in 116 countries, providing a massive opportunity to increase revenue by capitalizing on the combined network of both airlines.

2. Leverage Air France-KLM’s global presence: Air France-KLM is the largest European airline in terms of revenue and has a global presence, offering a unique opportunity to attract more customers, particularly in the premium market, by leveraging its global presence.

3. Focus on cost optimisation: Air France-KLM has an opportunity to reduce costs by streamlining their operations, including reducing maintenance costs, optimizing aircraft utilization, and introducing more efficient procurement and inventory management processes.

4. Improve customer experience: Air France-KLM can differentiate itself from competitors by improving the customer experience through initiatives such as introducing more automated check-in and boarding processes, modernizing their fleet, and introducing new digital technologies.


Below is a list of the weaknesses we have identified for the business:

1. Air France-KLM has been slow to adapt to changing customer preferences, preferring to stick to its traditional business model for too long. This has resulted in the company losing market share to more agile competitors.

2. The two airlines have often been in conflict with each other, leading to inefficiencies and a lack of coordination. This has been a key weakness compared to their competitors who have been able to better cooperate.

3. Air France-KLM has been burdened by high labour costs, which has made it difficult for the company to compete on price. This has been a particular problem in recent years as fuel prices have risen.

4. The company has also been hampered by a number of strikes, which have led to significant disruptions and cancellations. This has been a major source of frustration for customers and has led to a loss of business.


Below is a list of the threats we have identified for the business:

1. Competition: Air France-KLM faces an ever-increasing competitive landscape with rival airlines such as British Airways, Lufthansa, and Turkish Airlines. These airlines are offering competitive ticket prices, route coverage, and customer service standards.

2. Fuel costs: Fuel costs represent a major cost component for Air France-KLM, accounting for up to 30% of operating expenses. Increasing fuel prices can cause margins to suffer.

3. labour costs: Air France-KLM has the highest labour costs among the major European airlines, which can lead to increased operational costs.

4. Environmental regulations: Air France-KLM must adhere to stringent environmental regulations across the European Union, such as reducing CO2 emissions by 20% by 2020. Such regulations can lead to increased operational costs.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.
This (concise) 5C analysis examines the external and internal environment for Air France-KLM. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Air France-KLM, as well as areas where the company needs to improve its operations or strategy.
Company: Air France-KLM is an airline company that began as a joint venture between Air France and KLM Royal Dutch Airlines in 2004. The company is the largest airline in Europe in terms of total operating revenues and passenger numbers and operates a large international network of flights.

Collaborators: Air France-KLM works closely with a number of other airlines and partners, such as Delta Air Lines, Virgin Atlantic, and Etihad Airways. The company has also developed joint ventures with Alitalia, China Eastern Airlines, and Korean Air.

Customers: Air France-KLM's customer base is vast, spanning more than 180 countries. The company serves both leisure and business passengers, offering a variety of services and flight options.

Competitors: Air France-KLM's main competitors include Lufthansa, British Airways, and American Airlines. Other airlines, such as easyJet and Ryanair, also compete with the company in certain markets.

Content: Air France-KLM provides a range of content to its customers, including destination guides, travel tips, and special offers. The company also has an active presence on social media platforms, such as Facebook, Twitter, and Instagram, which it uses to engage with customers and share updates about its services.
5C Analysis

MOST Analysis

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

  • Mission
  • Objectives
  • Strategy
  • Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Innovation Scorecard

Below is a guide to each score:

Industry score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing


Company score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Air France-KLM as having an innovation score of D2.


The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.


This study on Air France-KLM forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

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The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.


Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 6th June 2023

Industry Keywords

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