Air France-KLM unveiled its new Perform 2020 strategic plan on September 11th. Perform 2020 is the successor to Transform 2015, which represented the first phase in the Group’s turnaround. While maintaining the imperatives of competitiveness and the ongoing strengthening of the Group’s financial position, this growth plan will focus on the following three strategic areas:
– Selective development to increase exposure to growth markets
– A product and services upgrade targeting the highest international level
– An ongoing improvement in competitiveness and efficiency within the framework of strict financial discipline.
Air France-KLM’s Chairman and Chief Executive Officer, Alexandre de Juniac, made the following comments: “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. 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.”
Medium-term financial targets are: 2017 EBITDAR up by 8% to 10.2% per year between 2013 and 2017, an adjusted net debt/EBITDAR ratio of below 2.5 from 2017, Targets consistent with a ROCE (return on capital employed) of 9% to 11% in 2017.
