Air France Industries KLM Engineering and Maintenance: Company Strategy & Performance Analysis
Air France-KLM primarily provides global passenger transportation services. It also has a presence in cargo transportation, aeronautics maintenance and overhauls services, and other air-transport related activities, including catering and air transport services. The company operates its business through five business segments: passenger network, cargo, maintenance, Transavia and others. Air France-KLM operates its maintenance business under Air France-KLM E&M.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading MRO companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including order, order backlog, operating expense, operating income, net income, and MRO revenue.
Strong order backlog to drive future growth
Air France-KLM E&M reported an order backlog of US$8.9 billion in 2016, in comparison to US$8.4 million in 2015, which includes several new A350 support contracts. The backlog increased at 6.0% over 2015-2016, despite a challenging market. For instance, in August 2017, AFI KLM E&M announced its plans to enter into an agreement with Delta Air Lines to provide component support for the US carrier’s Airbus A350 fleet, as well as reciprocal components.
Air France-KLM E&M stands eighth in terms of MRO revenue
Air France-KLM E&M MRO revenue increased by 15.8%, from US$1,750.8 million in 2015 to US$2,027.6 million in 2016. This increase was primarily due to the increase in the number of contracts secured by the group in 2015. However, the company faces tough competition from MTU Aero Engines, Lufthansa Technik AG, Honeywell International Inc. and Rolls-Royce Holdings plc. GE Aviation is the market leader in terms of MRO revenue with revenues of US$11.4 billion, followed by United Technologies Corporation with revenues of US$10.0 billion.
Robust operational network provides a competitive edge
Air France-KLM E&M currently operates as the largest aircraft network between Europe and the rest of the world. The group ranks second in terms of global multi-product MRO market revenue. It has maintenance sites in Toulouse, Amsterdam, Villeneuve-Le-Roi, Roissy and Orly. AFI KLM E&M continues to market its services to customers in the line maintenance segment. It is also focusing on developing its business in its main bases and internationally. AFI KLM E&M has set up a new joint-venture with iGO Solutions in Orly, which aims to deliver high-performance support to its customers. The joint-venture’s first customers are Transavia’s B737 fleet and French Blue’s A330s.
- Company Snapshot - Details key indicators and rankings of Air France-KLM E&M in terms of revenue, net income, and operating income.
- Company SWOT Analysis - Outlines Air France-KLM E&M’s strengths, weaknesses, and opportunities and threats facing the company.
- Growth Strategies - Provides an overview of Air France-KLM E&M’s corporate goals and strategic initiatives and evaluates their outcomes.
- Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
- Key Developments - Showcases Air France-KLM E&M’s recent corporate events and initiatives.
- ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
Reasons To Buy
- How does Air France-KLM E&M rank among its peers in terms of revenue and market share?
- What are Air France-KLM E&M’s main growth strategies and how successful has the company been at implementing them?
- How has the company performed since 2014?
- How has Air France-KLM E&M performed in comparison to its main competitors?
- What are Air France-KLM E&M’s strengths and weaknesses and what opportunities and threats does it face?