About Barfield Precision Electronics, LLC

Air France and KLM represent years of French and Dutch airline tradition, but Air France-KLM represents a first: a holding company made up of two national airlines. Together, Air France-KLM is the second-largest airline in Europe after Deutsche Lufthansa and one of the largest in the world. The company flies around 99 million customers and 1.1 million tons of cargo each year to more than 315 destinations in about 115 countries. It has some 540 aircraft. Air France and KLM operate independently from hubs in Paris and Amsterdam, and are members of the SkyTeam alliance with Alitalia, Delta Air Lines, and Korean Air Lines. Air France-KLM also has a strategic global partnership with Delta and Virgin Atlantic.

Operations

Air France-KLM offers passenger transportation, cargo transportation, and aircraft maintenance services and transports around 100 million passengers and 1.1 million tons of cargo annually. It has a fleet of around 540 aircraft in operation. Some 80% of its total cargo tonnage is carried in the bellies of its passenger aircraft, supplemented by a six-strong full-freighter fleet that covers routes not served and items that can't be carried by passenger craft.

The company's single operating segment consists of four businesses. Its Network business is its primary passenger and cargo business that operates under the brands Air France, KLM, HOP!, and Joon. It generates more than 85% of sales.

Its low-cost airline is Transavia accounts for 5% of sales and flies customers in the Netherlands and France to 110 European and North African destinations. Transavia has a fleet of eight B737-700s and 60 B737-800s. Air France-KLM's Maintenance unit generates more than 5% of total revenue, and serves both Air France-KLM and third parties with maintenance, repair, and overhaul services. Its three main areas are airframe maintenance, engine maintenance, and component support (electronic, mechanical, pneumatic, and hydraulic).

The Fleet segment consists of Air France-KLM's 410 long-haul and 125 short-haul aircraft.

 

Geographic Reach

The Air France-KLM network is organized around its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol. With these two major hubs, the company links Europe to the rest of the world, spanning some 315 destinations across 115 countries.

Financial Performance

Note: Growth rates may differ after conversion to US Dollars.

Air France-KLM has been under pressure for several years amid stagnant revenue and recurring annual losses. Air France-KLM's revenue returned to growth in 2017, coming in it €25.8 million, up 4% on 2016. Growth was led by the Transavia unit and an increase in passenger and freight activity. Overall capacity increased by 3%.

However, despite encouraging revenue gains, the company slipped to a net loss of €274 million versus a profit of €792 million the previous year. The poor result was almost entirely down to a pension dispute with pilots and cabin crews that resulted in a change to a defined contribution scheme; the total cost amounted to €1.9 billion. Excluding this one item, operating profit was €439 million higher thanks to higher revenue.

Cash from operations increased 29% to €2.9 billion due to adjustments to reconcile costs stemming from the pension dispute.

Strategy

Air France-KLM is passing through severe turbulence. Losing customers to budget airlines like Ryanair and EasyJet, the company posted year after year of losses before the company restructured in 2014 and 2015. It cut costs and froze or slowed pay rises while demanding productivity increases from its employees. The measures triggered massive and well-publicized strike action in 2017 that forced the company to back down and dragged the company back to loss.

Taking the loss, the company is looking into ways to innovate on its long- and short-haul services and return to profitable growth. Air France-KLM's Transavia budget airline is growing quickly and in 2017 became the leading low-cost airline flying from the Netherlands and the Paris-Orly airport. In 2017 the company introduced a new concept airline, JOON, which marries low cost with "millennial-friendly" services such as less formal cabin crews, craft beer, decent coffee, and cocktails (some may consider these welcome developments regardless of age group).

The company reinforced its partnerships with Delta, Virgin Atlantic, and China Eastern in 2017, with the pair taking 10% ownership stakes in Air France-KLM, and Air France-KLM taking a 31% stake in Virgin Atlantic. It is also looking to deepen its arrangement with Brazilian carrier, GOL, which serves the Europe-Brazil route.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

Barfield Precision Electronics, LLC

2200 Nw 84th Ave
Doral, FL 33122-1518
Phone: 1 (305) 436-5464
Fax: 1 (305) 436-6064

Stats

  • Employer Type: Public
  • Human Resources: Adriana Artiles
  • Inventory Management and Information Technology Director: Karim Daoudalmadowar
  • Employees: 300

Major Office Locations

  • Doral, FL