Air France: A new customer and results-oriented organization to accompany the roll-out of Transform

Alexandre de Juniac, Chairman and CEO of Air France, has presented to Company managers the project for the new Air France organization, supporting the implementation of Transform 2015, in an aim to restore the Company's competitiveness and place the customer at the heart of its strategy.

This organization plan, which will be implemented on 1st January 2013, is structured into eight business units: long-haul; medium-haul at Paris-CDG; Paris-Orly and the regional airports; the French Regional Hub; Transavia France; cargo; industrial operations; Servair.

Each of these business units must optimize the economic performance of its scope of activity. Each business unit will notably be responsible for controlling costs in its area of management as well as following up the implementation of Transform 2015.

Each of the eight business units should be represented on the Air France Group's Executive Committee.

Passenger operations structured into 3 business units

Passenger operations, generating a major part of the Group's turnover, will be organized into three business units:

• long-haul;
• medium-haul at Paris-CDG;
• Paris-Orly and the regional airports.

For greater economic and operational efficiency, each Vice President will have responsibility for the different stages of the customer's trip: from marketing to the implementation of the ground and in-flight products by the ground and in-flight product teams. A pilot and cabin crew manager will also report functionally to their Vice President, to ensure optimum links with crews.

These three business units will cooperate with the cross-functional businesses (sales, Marketing Revenue Network, cockpit and cabin crews) and admin functions (Finance, Human Resources, Communication, etc.).

Seven projects geared to achieving a successful reorganization

Seven project managers have been appointed to work on this new organization, and will continue to work in their current scope of activity until 1st January 2013:

• Long-haul passenger operations: Bruno Matheu
• CDG medium-haul passenger operations: Alain-Hervé Bernard
• Orly & regional airport passenger operations: Florence Parly
• Interface with businesses and cross-functional areas of activity: Michel Emeyriat
• Marketing: Christian Boireau
• Cabin Crews & In-flight product: Anne Rigail
• Economic management: Frédéric Gagey

Each project manager will associate the key players in the relevant scope of activity to the projects being carried out.

Implementation scheduled for 1st January 2013

This planned reorganization aims to be more customer and results-oriented, with a clearer assignment of responsibilities, more agile and reactive, and more cross-functional, favouring team work. It aims to guarantee the coherence of business functions within the Company through a more modern form of human resources management. It will be presented to the Central Works Council for information and consultation in mid-December, for application on 1st January 2013.

"Customer focus, reactivity and team work are our guiding principles that have led us to choose this organization. It aims to favour the roll-out of Transform 2015 and meet its ambitious objectives of a return to competitiveness and a more upmarket positioning of its products and services" stated Alexandre de Juniac, Chairman and CEO of Air France.