Driving the economy
The direct and indirect activities of the airlines and other businesses within Air France-KLM 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
More than 90% of our employees are based in France and the Netherlands, showing that we are a significant contributor to job creation in the regions where our 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.
The Group is an asset to French economic competitiveness.
- €40 billion positive economic impact attributable to the Air France-KLM’s activity, representing 1.6% of French GDP
- 475,000 FTE jobs depend on the Group’s activity
- For every job created by the Group, 8.7 jobs are created in the French economy
- For every euro invested, the Group generates two euros in the national economy
- The Air France-KLM Group’s activity directly generates €3.6 billion (including the taxes and social contributions paid by the Group and its employees)
- Air France is a leading private sector employer in the Paris region
(source : Economic Impact’s study, EM Strasbourg, 2019)
The routes operated by Air France Group contribute to French regional development (more than €710 million of contractual procurement), 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).
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. Located in North-East France, near Valenciennes, the operational base began operations in mid-2019. The two partners will invest over €20 million in the new company. The site enriches 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.
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 2019, more than 4,800 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.
In 2019, at the Paris Air Show in particular, Air France coordinated discussions to shape the future for air transportation, strengthen competitiveness, define the strategy for the French flag, and ensure its improved competitiveness.
In The Netherlands
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 2019 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 thirty commercial contracts have been signed, like Sharegroop, a shared payment solution for group reservation files, which is being developed throughout the Air France Group (Transavia, AF, etc.). Over 4 years, young companies supported by Air France have generated more than 2,000 jobs in France, with more than € 200 million in private investments.
KLM and its partners are constantly working to support innovative companies:
- 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 17 innovative startups. In 2019, the Dutch start-up Aiir Innovations obtained funding for the development of a new system that makes use of artificial intelligence for the inspection of aircraft engines.
- Five Dutch companies Ahold Delhaize, ING, KLM, NS and Philips aim to further boost the AI ecosystem in the Netherlands by accelerating and promoting the development of AI technology and nurturing AI talent in the country. This effort will add educational capacity, foster the development of the AI community in the Netherlands and reiterate the position of the Netherlands as a competitive and relevant global AI hub.
As the number one airline carrying international tourists visiting France, Air France-KLM makes a significant contribution towards promoting France and the Netherlands as destinations.
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 , 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) by supporting the Paris bid committee to host the 2024 Olympic Games and Paralympic Games.
- By promoting the cities of France: since the arrival of the first A350 named “Toulouse” in its fleet on September 27, 2019, Air France has revived the tradition of honoring the cities of France by giving its aircraft the name of one of them. Air France thus contributes to the international influence of the regions and to their tourist attractiveness. After Toulouse, the cities of Lyon, Saint-Denis de la Reunion, Nice, Bastia and Roissy in France have already given their name to an Air France plane.
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.