Driving the economyThe Group's direct and indirect activities contribute to economic development at a national level in France and the Netherlands, and specifically around its Paris and Amsterdam hubs. These hubs offer multiple connections, and form an extensive network that generates an attractive business environment, contributing to the connectivity and the economic and touristic attractiveness of these areas.
NATIONAL AND LOCAL ECONOMY
With more than 90% of the Group’s employees based in France and the Netherlands, we are a significant contributor to job creation in the regions where our two hubs are located.
Our activities also generate numerous indirect and induced jobs. More than three quarters of the services subcontracted by Air France-KLM are based in Europe: catering, ground-handling and cleaning, as well as subcontracted services required for the operation of aircraft.
The hubs provide highly attractive business environments while airport proximity generates the development of other activities such as those of hotels and congresses, company show-rooms, commercial and marketing actions, innovative activities and business services.
Air France Group
The Air France Group is an asset to French economic competitiveness:
- more than 350,000 jobs generated by Air France‘s activities in France*
- €22 billion of economic spin-offs in France attributable to Air France*
- 1,1% of French GDP*
- 93% of Air France employees pay social security contributions in France, while the company generates more than 50% of its revenues outside the national territory
- a leading private sector employer in the Paris region with more than 37,100 employees
(*source : study “Air France’s Economic Impact in the Metropolitan Area”, EM Strasbourg; 2016)
The routes operated by Air France Group contribute to French regional development, foster wealth creation and strengthen the attractiveness of the regions where they operate, encouraging foreign investment and the setting up of foreign companies in France. The Air France Group is present on 44 French airports (mainland France and overseas). HOP! Air France participates in serving remote and peripheral areas by responding to calls for tender to operate public service obligation (PSO) air routes.
Air France and its subsidiaries demonstrate their commitment to French regions by investing, opening new sites and creating jobs. They also takes part in the circular economy: one such example is Airfoils Advanced Solutions being set up by AFI KLM E&M in a joint venture with Safran, dedicated to aircraft engine compressor blade repairs. The operational base will be in North-East France, near Valenciennes, and it is scheduled to begin operations in mid-2019. The two partners will invest over €20 million in the new company. The future site will, as a result, enrich Air France KLM’s maintenance capabilities and help insource an activity that is currently subcontracted in Asia. By 2020, the company should be employing about 200 staff in this new facility. Recruitment and training of new employees started in 2017.
Air France supports French regions where Voluntary Departure Plans resulted in significant job losses, through a series of actions designed to promote the emergence of new activities, creation or maintenance of jobs. Over the period between 2011 and 2016, 2,979 jobs were created or maintained in the regions of Roissy, Orly, PACA, Corsica, French overseas departments and territories, including jobs for people with disabilities, or in the social and solidarity economy. New funds, currently in the process of being implemented, aim to create or maintain 1,901 jobs by 2019.
In 2018, during the French national debate known as Les Assises du Transport Aérien, Air France worked with the public authorities to build the future of air transportation, strengthening competitiveness and defining the French national strategy.
The hub-network of KLM (together with its partners) connects the Netherlands to almost all important economic, political and cultural regions in the world. The operations of the KLM Group also create many direct and indirect jobs in and around Amsterdam Airport Schiphol:
- Third largest private sector employer in the Netherlands in 2018 with more than 33,000 of the 65,000 directly-generated jobs in the Schiphol catchment area.
KLM and 8 other Dutch multinationals make up the Dutch Sustainable Growth Coalition (DSGC) which has the objective to pro-actively drive sustainable growth business models along 3 lines:
- Uniting economic profitability with environmental and social progress on the basis of integrated sustainable growth business models
- Engaging in joint advocacy of sustainable growth business models both internationally and nationally
- Enabling sustainable growth by finding solutions for the environmental and social challenges.
Through its Open Innovation approach, Air France reaffirms its commitment to innovative young companies and their development, consistent with the principles of Alliance for Open Innovation, which it joined in December 2015.
Air France supports these promising startups by participating as a founding member in the business incubator Welcome City Lab, dedicated to tourism, and through working with organizations dedicated to aeronautical maintenance. Over hundred POCs (Proof of Concept) with startups were carried out all over the company and many of them have been turned into commercial contracts. The Group also supports these startups by giving them the opportunity to open up to new markets and by helping them to find the necessary funds for their development, as part of a program created in association with Hokage.
Air France has again demonstrated its commitment to startups, members of the French Tech, by creating a new operation, the “French Tech Takes Off”: from September to October 2018, the company offered its customers to test the innovations of 10 French startups at Terminal 2 E of Roissy-CDG and on a dedicated website.
In 2018, the Air France-KLM Group unveiled the startup studio BigBlank, subsidiary of the Air France-KLM Group, whose mission is to explore all the latest trends in the travel sector and to create companies with innovative projects and high growth potential.
KLM and its partners are constantly working to support innovative companies:
- KLM Pioneers is an innovation platform that offers the possibility of further development of internal and external entrepreneurial initiatives, together with KLM.
- KLM, Schiphol Airport, NS Dutch Railways, Port of Amsterdam and Technology University of Delft work together through the “Mainport Innovation Fund II” (MIF II) which aims to accelerate innovation in the mobility industry by investing in startups that contribute to sustainable, safe and efficient transport. The MIF II fund has invested in 14 innovative startups.
In 2018, Air France and KLM have transported 6.3 million passengers who were visiting France. We contribute to promoting France and the Netherlands as destinations:
- On board, as on the ground, with services and gastronomy that showcase French products.
- Through Air France advertising campaigns, its in-flight magazine Air France Magazine, digital travel guide Travel by Air France (with 3.6 million visitors in 2018), as well as through innovative events organized throughout the year by Air France’s and KLM’s local teams in the cities we serve.
- By supporting and leading joint actions with Atout France, French tourism development agency, of which Air France is a historical partner, and UniFrance, the national organization that promotes French cinema to the rest of the world.
- Through a partnership with the Schneider Electric Marathon de Paris, one of the biggest marathons in the world.
- Through a partnership with the Château de Versailles, and the Escales Culture partnership signed with the French Ministry of Culture to promote some of the lesser-known French cultural heritage sites.
- As official partner of CNOSF (French National Olympic Sports Committee) on the occasion of the Olympic Winter Games of PyeongChang in South Korea in February 2018, and by supporting the Paris bid committee to host the 2024 Olympic Games and Paralympic Games.
In 2017, KLM and Amsterdam Marketing – the city marketing organization of the Amsterdam Metropolitan Area – continued their partnership to make Amsterdam a more competitive destination and attract more international visitors. KLM supported the promotion of MICE business in Amsterdam and entered into partnerships with cultural institutions (Frans Hals Museum, Van Gogh Museum, Rijksmuseum, Concertgebouworkest). KLM has also formed longer term “Holland Alliances” with Amsterdam Airport Schiphol and NBTC Holland, to develop and execute marketing programs in other European countries and to invest in emerging markets such as Russia, Brazil, India and China.