Abstract
We have chosen following framework for the assignment about Air France - KLM : What is our (Air France - KLM) competitive advantage, how to consolidate it and ensure its continued existence? How to grow on this competitive advantage? We are aware of Air France - KLM has several different and important SBU's in their entire organization portfolio, but because of page restrictions the assignment will mainly focus on Air France-KLM's short‐haul business unit.
Despite Air France - KLM's good position on the European market they are still facing serious risks and challenges in the future. A continuously risk is terror attacks, which shocked the whole airline business after 9/11 back in 2001. Passengers where simply afraid to fly and the business only survived because the respective governments helped them out with financial help. One of the key challenges is also to get out of the financial crisis without too much suffering.
As Air France also points out in their outlook for the financial year in 2010, there are a lot of uncertainties about the forecast for 2010, even though some indicators points toward more stabilization. A huge challenge is also the increasingly growing market for low budget flights and whether they in the future are going to compete on long distance flights.
Despite Air France - KLM's good position on the European market they are still facing serious risks and challenges in the future. A continuously risk is terror attacks, which shocked the whole airline business after 9/11 back in 2001. Passengers where simply afraid to fly and the business only survived because the respective governments helped them out with financial help. One of the key challenges is also to get out of the financial crisis without too much suffering.
As Air France also points out in their outlook for the financial year in 2010, there are a lot of uncertainties about the forecast for 2010, even though some indicators points toward more stabilization. A huge challenge is also the increasingly growing market for low budget flights and whether they in the future are going to compete on long distance flights.
