Air France-KLM unveils 'Perform 2020' five-year strategic plan

Air France-KLM unveiled (11-Sep-2014) its 'Perform 2020' five-year plan, with the following highlights:

• Growth of the passenger hub business;
• Creation of a single business unit to further optimise point-to-point operations, with a target of a return to operating breakeven by 2017;
• New development phase in the European leisure market via Transavia;
• Finalisation of cargo repositioning;
• Expansion of the maintenance business;
• Ongoing productivity drive and financial discipline maintained across the Group.

The company also set the following financial targets to 2017:

• EBITDAR up by 8% to 10% per year between 2013 and 2017;
• An adjusted net debt/EBITDAR ratio of below 2.5 from 2017;
• Targets consistent with a ROCE of 9% to 11% in 2017.

Air France-KLM chairman and CEO Alexandre de Juniac said: "Transform 2015 will be completed by the year end having fully delivered on its objective of significantly improving the Group's competitiveness and delivering a €1 billion-plus reduction in costs. Perform 2020, the strategic plan we are launching today, will be supported by two main levers: growth, which we are looking to capture in a number of areas, and competitiveness combined with financial discipline which should continue to ensure firm foundations for the development of Air France-KLM. This is why the ambitious initiatives we are launching today will go hand in hand with redoubled efforts to reduce costs and restructure activities which remain loss-making." Mr de Juniac added: "By 2020, we will have built an air transport Group focused on a leading long-haul network at the heart of global alliances, with a portfolio of unique brands, restructured short and medium-haul operations with a reinforced presence in the low cost segment in Europe, leadership positions in cargo, maintenance and catering, and a significantly improved risk profile both operationally and financially." [more - original PR - English/French]