Three years after they merged, Air France and KLM say the combination has paid off. At a press conference to announce the 2006-07 result here in Paris last month, chairman Jean-Cyril Spinetta reported strong increases in revenue and income. The joint French/ Dutch operation is profitable, and the share price has risen 70 percent this year. “By every standard, it’s been successful,” added vice chairman Leo Van Wijk.
Spinetta and Van Wijk were the architects of this unusual amalgamation, which created the world’s largest airline by revenues, with an employee count of 100,000. Both carriers retained their individual identity, traditions and labor agreements.
The reasons were practical as well as cultural. International Air Service Agreements signed by France and The Netherlands did not provide for a cross-border airline merger. The recent transatlantic “Open Skies” pact begins to change all that, though Air France KLM currently has no plan to rebrand and consummate the union.
