Air France-KLM (document en anglais)

Introduction

Air France-KLM is one of the most known groups of the world, with the tourism dynamism and the reputation of France, attracted customers to live a moment “à la française”. AF-KLM is the only major group In France, if we except the presence of Air Tahiti Nui in the French Polynesia. The group is actually facing a major crisis due to the development of low-cost companies for customers who only want to reach their destination, and by the very low profitability which makes AF-KLM lacking of competitiveness among major airliners such as Lufthansa or Singapore Airlines and the group is also hindered by social strikes from its own staff or by external actors such as airport staff or taxis. These events doesn’t help AF-KLM to gain a positive image among its customers, which is also related to country status. In this report, we will explain about the HR procedures and managerial changes by the group in order to reach competitiveness again.

I. Presentation of Air France KLM.

a. Company background

Air France is the national career of the French Republic created in 1933 and based in Charles-de-Gaulle Airport in Paris. This company merged with KLM Royal Dutch Airlines in 2004 which resulted into the third most important group in the world in terms of passengers and the fourth most important group for Cargo. Actually, 252 worldwide destinations are proposed (without including the SkyTeam network) to the customers, 380 operating planes and 90 freighters. As a part of Skyteam alliance, Air France can share its network to its partners in order to increase the service to customers, this group have also 25% of Alitalia, the national carrier of Italia, and have strong partnership with the American Delta. 59485 employees (19257 from flight crew) are working actually for the group.

b. Human Resources Policy

Human Resources at Air France KLM are based on:

• Diversity of profiles (origin, culture & professional experience) : Being an international group permits to the company to have a wide scale of profiles which coexist in order to participate into company’s development.

• Equality of change & fight against discrimination: through its social and ethical charter, Air France KLM affirms its wish to insure equal and right human resources practices. In this way, the group signed several agreements with social partners & trade unions about :

 Equality between woman and man.

 Social and professional insertion of disabled person.

 Work/Study training program charter.

 Triennial agreement of strategic workforce planning.

c. Human Resources Practices

In order to be closer of employees, managers of each department and human resources team work together. Whatever his function, one employee can build his own professional project and involve inside the company thanks to the help of human resources department.

• Recruitment Process.

Recruitment process is adapted to the function which the candidate applies for even if some steps are unavoidable. Air France’s process recruitment is certified ISO 9001 which proves the quality of the human resources practices of the company. After applying for a position, the candidate takes part into a “selection day” composed of:

 Skills and knowledge’s tests which permit to estimate knowledge in a specific domain and measure competencies more or less specific such as problem’s resolution and adaptation to new situations.

 Personality tests in order to outline the personality of the candidate. Answers will be discussed during individual interview.

 Interviews permit candidates to explain their experiences and their motivations.

 Simulations consist on evaluating behavior and determining if candidate has the appropriated skills for the function.

• Integration inside the company.

 Integration process adapted to the function and to the department.

 Training program linked to the function: employee follow both general and specific training program in order to have an overview of the company and also to be specialized.

• Life inside the company.

o Exchange with top management and human resources department.

o Annual evaluation, face to face with manager, permits to formalize achievement of the objectives, points which should be improved and training plan for the next year. This Annual meetings permit to focus on the wishes about career’s evolution of each employee in order to organize an adapted training.

o Once hired, employees have at their disposition several “tools” organized by Human resources department in order to co-building their own project with the company.

 “Espace Mobilité” which advices employees about the professional choices and help them to build the mobility’s project by preparing them to internal interviews and analyzing skills assessments.

 “Observatoire des métiers” which analyses professions and permits to link each function to competences which should be developed. Thanks to this tool, employees can see what they have to learn or develop if they want to involve in their function.

 “La Bourse Electronique de l’emploi” which informs employees about open positions inside the group.

d. Market changes and opportunities

With the apparition of low cost companies such as Easyjet of Ryanair, development of new mode of traveling and economic changes, Air France had to adapt their strategy, in particular about pricing. That’s why the company decided to develop its activity “low cost” with two new subsidiaries: HOP! and Transavia. This change needed a reorganization, in particular about human resources. First, the group Air France merged its three regional companies into one (HOP!). Secondly the pricing changed the methods of service and obliged AF-KLM to rethink its HR Planning, this company will check on which sector staff can be adjusted, it will concern the Airport Operations, the Ground Operations and Information Technologies which Internet is gaining success among customers who are willing to perform their purchase quickly (for example, applications on smartphones: Air France Mobile).

II. Human

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