Financial Analysis
Air France KLM-Lufthansa
Strategic Presentation

Brand awareness
In their respective countries, these two companies have a high notoriety. They are two European leaders and are very well-known worldwide. In terms of intangible assets, we cannot make any comparison: the copyrights or the brand awareness are not detailed which do not allow us to compare anything.
Competition, environment, Market shares
Presence (in 2007) Air France Lufthansa
Passengers transport x (79.6%) x (69%)
Freight transportation x (12.6%) x (12%)
Maintenance services x (4.2%) x (10%)
Catering x (3.6%) x (8%)
IT services x (1%)
Training x (negligible)
There are competitors on the same market shares for the passengers’ transportation: they deal with medium and high quality services provided for their main activity (passengers).
We can notice that the two companies have the same activities around in the same proportions.
Both companies are growing in their respective activities.
The two next charts show the turnover in 2007 and the different activities of both companies.

Air France Lufthansa
23 118 000 23 251 000 The turnover of the 2 companies: we can notice the impact of the merger between Air France & KLM which occurred in 2004 by the quick increase of the turnover of the company. That’s why we have to take care of the figures in the year 2004 in our analysis because the mergers occurred during this year and the consolidation was in progress.
Geographical implantation
It is important to underline that both companies are mainly established in Europe. They are both leaders in the scheduled passengers traffics and freights. For instance, Lufthansa leads the cargo market with 1.7 M Tons of material transported against 1.5 M Tons for Air France – KLM.
Concerning the international establishment, we can see that Air France-KLM has built a more extended network, more particularly in former French colonies, e.g. Asia, Pacific Islands, America.