Turnaround program "Transform 2015" of Air France-KLMSUMMARYThe case concerns the turnaround program of the French-Dutch airline Air France KLM. The airline was formed by the merger of French and Dutch airlines in 2004. The case describes the cross-border alliance and the good performance of the airline in the first years after the merger. However, since 2009, the company has struggled to remain competitive in the ever-changing global aviation industry. According to some analysts, the differences in the culture and management styles of both Air France and KLM have become an obstacle to realizing the synergies of this partnership. The case highlights the challenges faced by the airline due to rising fuel costs, competition from low-cost carriers and the consequences of the financial crisis. The case discusses "Transform 2015", the turnaround program adopted by the airline in 2012. It highlights the key measures taken in the turnaround program. While some industry experts were convinced that the turnaround strategies would help revive the airline, others were skeptical about it. The case concludes with a discussion of the challenges facing the company.QUESTIONS• What do you think contributed to the problems faced by Air-France-KLM after 2009? Does it indicate the failure of a cross-border merger? Culture, chapter 5 of the book.• Discuss the organizational structure adopted by Air-France-KLM. What are its pros and cons? Discuss the new organizational structure of Air France.• Discuss the "Transform 2015" program announced by Air France-KLM. Do you believe that the measures envisaged by the program will contribute to the revival of the airline? Send your answers to these questions via email. (b.vanbeers@fontys.nl) before Us...... middle of the page......January 2009: operational partnership with Alitalia. 25% stake in Alitalia. Potential synergies of 370 million are estimated starting from the 2nd/3rd year. - April 2009: strategic alliance with Delta Air Lines. Expected improvement of 150 million in operating profit in three years of this network. - 2010: The Group redefines its medium-haul product and restructures the cargo business - 2011: AF-KLM operates more than 586 aircraft, 2500 daily flights to 230 destinations in 113 countries. 75.8 million passengers and 24.4 billion in revenues (schemes 2a 2b and 3)3. A successful merger? The Air France-KLM merger was unique because it was a cross-border merger with companies that have different cultures. Both continued to fly under their own brands. In the early years it was a success due to the consolidation needs of the European aviation industry.