Air France KLM offers seamless connections to Europe and beyond

TTN recently had an exclusive interview with Simon Scholte, the General Manager for Air France KLM in the Middle East, comprising two of the world’s major pioneering airlines. The conversation delved into their performance, latest advancements, and the hot global topics of sustainable and responsible travel and tourism.

How are Air France and KLM performing globally and in the Middle East after the reopening?

Both airlines are performing well globally and in the Middle East, after the reopening. Along with the entire commercial air travel sector, we experienced a significant impact from the Covid-19 pandemic, resulting in loss-making years and the need for state support. However, we have successfully returned to profitability and no longer require state support. 

In 2022, we had an operating result of +1.2 billion Euros and this is 0.1 billion Euros above 2019. Our EBIT (earnings before interest and taxes) margin was 4.5% (+0.3 percentage points versus 2019). So, we have regained our pre-Covid numbers.

In the Middle East, our routes out of the region are also performing well. We saw that during Covid Dubai became a very popular destination and hence we see more incoming travellers even in the hot summer.

Will there be any changes in aircraft type or upgrades for Air France and KLM?

Both Air France and KLM have ongoing programmes to upgrade and retrofit their aircraft fleets. For example, KLM is transitioning from A330s to Boeing 787s and implementing Premium Comfort, which will also be available in the Middle East. Meanwhile, Air France operates A350s and has introduced a new business class seat that is fully flat and offers complete privacy with aisle access.

Air France and KLM aim to provide more choice and control to their customers. Instead of a fixed price, customers can now choose between three product options for each cabin. These options include one with less baggage, one with normal baggage, and a fully flexible option. The unbundled fare provides a greater value option, allowing customers to personalise their experience by adding extras like Wi-Fi, lounge access, and priority boarding. This approach aligns with the direction of the travel industry.

Meanwhile, the airlines’ Flying Blue loyalty programme rewards customers for sustainable choices. If customers purchase Sustainable Aviation Fuel (SAF), they receive more XP points, which serve as the qualifying mechanism for higher status. Donating miles to charity also earns them XP Points. Air France and KLM are increasingly focused on encouraging and rewarding sustainable customer behaviour.

What are the key pillars for the airlines in reducing direct and indirect emissions?

Sustainability is a crucial aspect for the survival of our industry, and we have been committed to a more sustainable industry even before it became a global priority. Our key pillars for reducing emissions at Air France and KLM are focused on concrete goals. Our ultimate ambition is to achieve Climate Neutrality (Net Zero) by 2050. To reach this, we have set specific targets. By 2030, we aim to have 10% Sustainable Aviation Fuel (SAF) and reduce emissions per passenger kilometre by 30% compared to 2019.

There are multiple ways to achieve these targets. One approach is through aircraft renewal, adopting new-generation aircraft that have lower emissions per passenger kilometer. Another track is to increase our usage of SAF, which we are investing heavily in. For example, KLM has invested in an SAF plant in the Netherlands and has established agreements with multiple providers, including Nestle and DG Fuels, to supply us with this fuel. Additionally, we are collaborating with our suppliers to be at the forefront of climate-neutral energy sources such as hydrogen and electricity, although these technologies are still under development. We believe that forming partnerships is crucial in this endeavour.

We also look at the full supply chain, considering the first, second, and third sources of emissions. For instance, in ground operations, we aim to transition to zero-emission ground products by 2030. This involves shifting to electric vehicles and the use of Auxiliary Power Units (APUs). We have numerous initiatives in place to achieve these goals.

Can you provide some insights on NDC (New Distribution Capabilities)?

NDC is a significant area of investment for us locally. It offers enhanced opportunities for travel agencies by providing access to a wide range of products, features, rich content, and images, including the latest business cabin seats. NDC simplifies the booking process for travel agencies, allowing them to sell branded fares and additional services more conveniently. In Europe, NDC is already in regular use, and here in the Middle East, together with our partners, we are witnessing a growing adoption of NDC.

What percentage of your bookings come through travel agencies compared to direct bookings on your websites?

Approximately 70% of our bookings are made through travel agencies, and particularly in the area of corporate travel.

What initiatives have been implemented to address the elimination of plastic and water usage onboard the aircraft?

We have implemented several initiatives to reduce plastic consumption. We have also made significant efforts to reduce the aircraft weight, which not only helps cut fuel consumption but also contributes to environmental sustainability. On the KLM side, we no longer carry excess fuel for return trips, even though it may be cheaper to do so. We prioritise the environment over cost in this aspect.

We have also introduced initiatives to tackle food waste by promoting pre-selection of meals, which encourages passengers to choose their desired meal in advance. This approach helps reduce food waste and ensures passengers receive the meal of their choice. It’s a win-win situation both for passengers and the environment.

Furthermore, we have taken steps to use recycled materials on board. For example, the blue dots on the carpets of KLM aircraft are made from recycled uniforms. Additionally, we have decided to discontinue the traditional water cannon salute when launching a new route or landing at a new destination. We maintain a constant mindset of considering sustainability in all our choices, even if it may incur additional costs.

What initiatives have been implemented at your regional office to promote sustainability?

We have several initiatives here to promote sustainability. Firstly, our office holds LEED Gold certification, highlighting our commitment to sustainable practices. We also strive to invest in SAF through partnerships with our travel agencies and corporate clients. SAF is a more expensive alternative to traditional fuel, but it is carbon-neutral when burned, as it offsets CO2 emissions. We are pleased to have six partners in the Middle East region who are investing with us in SAF.

At airports, we are transitioning from using GPU (Ground Power Units) to APU (Auxiliary Power Units), which charges the airplane’s batteries from the ground. This shift reduces emissions. We are also embracing digital transformation by replacing paper boarding passes with mobile boarding passes and eliminating magazines on board to reduce weight.

Additionally, we have initiatives on eco-piloting, where we optimise engine usage during flights. Instead of using two engines when taxiing on the runway, we use one, resulting in fuel savings. We also conduct ‘climate college’ workshops with our staff and travel agencies to raise awareness about sustainability and its impact.

Furthermore, we organise a ‘Citizen Day’ once a year in each city where our teams are located. On this day, we engage in activities that benefit the environment, such as planting trees or collecting reusable clothes. It serves as a team-building exercise while making a positive impact.

Let’s shift our focus to people and culture. How does Air France KLM promote diversity and inclusivity?

People and culture are of great importance to us, and we strongly believe that diversity is vital for sustainable growth. The more diverse we are, the stronger we are; the more comfortable we are, the more creativity there will be. We strive to create an inclusive environment where individuals can be themselves.

One aspect we prioritise is gender diversity. By 2030, we aim for 40% of management positions worldwide at Air France KLM to be held by women, with 30% representation on the Group Executive Committee. In the Middle East, 45% of our team consists of women, and in my management team, it’s currently at 40%, soon to reach 50%.

Embracing a mix of nationalities is something we really value. With 23 nationalities represented in our Middle East team, we benefit from diverse perspectives, ideas, and cultures, which strengthen our organisation. Additionally, we place importance on inclusivity for people with disabilities. In Dubai, for example, we have a partnership with Mewaheb Art Studio for Adults, collaborating on art projects to foster inclusivity.

Did you experience the need to lay off employees during the pandemic, and are you now rebuilding your team?

Yes, during the pandemic, we had to let go of approximately one-third of our staff in the Middle East. This was partly driven by efficiency measures, as we merged two regional offices, one in Dubai and one in Beirut. At the head office, we are rehiring pilots and ground staff as we are experiencing growth once again.

Additionally, we receive excellent support from our partners in the region. We have strong relationships with governments and other stakeholders that stimulate business and provide an open exchange of ideas. We are also grateful for our airline partners, who enable us to offer more opportunities for customers, travel agencies, and corporate clients. Lastly, we have an excellent team of qualified and motivated employees who perform exceptionally well. I consider myself fortunate to be surrounded by such wonderful partners, clients, and employees. It’s truly fantastic.