Copyright © BusinessAMBE 2023
Key takeaways
- Air France-KLM plans to adopt a new name following its acquisition of Scandinavian airline SAS.
- The rebrand is intended to create a single, unified identity for the growing group, similar to International Airlines Group.
- The move signals a shift towards centralising operations under the Paris-based holding company.
Air France-KLM is preparing for a major transformation as it plans to integrate Scandinavian airline SAS into the group. The expansion is expected to lead the group to adopt a new name and move away from the existing “Air France-KLM” brand.
One single brand
Sources indicate that the new name will contain neither Air France nor KLM, following the structure of International Airlines Group, owner of British Airways and Iberia. The aim is to create one single brand that reflects the changing nature of the group.
The acquisition of SAS, which is expected to be approved in the second half of this year, marks a crucial step in Air France-KLM’s growth strategy. In addition, the group has also made an offer for TAP Portugal, although it faces fierce competition from Lufthansa.
Internal discussions
Although no official name has yet been decided, internal discussions are under way. Some insiders have suggested “the Blue Group” as a possible working title, reflecting the shared identity of the airlines under the new umbrella.
The name change has prompted mixed reactions within senior management. Some see it as a necessary step towards a more integrated and efficient structure, while others have expressed concern about moving away from established brands.
Centralisation
Historically, Air France and KLM merged in 2004, with alternative names such as “French European Airlines” considered in initial discussions. The latest move points to a shift towards a centralised business model in which the Paris-based holding exercises greater control over the individual airlines.
The trend towards centralisation is clearly visible in recent decisions, including the transfer of KLM subsidiary AirTrade to the holding in Paris. Although AirTrade director Jeroen Martron sees this as a logical step that reflects the strategic value of their activities, it also means a reduction in KLM’s autonomy. (fc)
Follow Business AM on Google News
Would you like access to all articles? Take advantage of our temporary promotion and subscribe here!
© The Content Exchange, source News