In 2004 Air France and KLM Royal Dutch Airlines joined forces to become the Air France-KLM Group (AF-KLM). With the two historic airlines' fleets and operations combined, the conglomerate has become one of the largest European airline groups along with Lufthansa Group, IAG, and Ryanair. In its nearly two decades of existence, the partnership hasn't always been smooth - and the two airlines still have their differences, despite cooperating quite closely. Today, we examine the state of Air France-KLM, and what the future holds for the two main parts of this group.

1 group, 3 airlines, and 3 businesses

As noted by the official group website, both Air France and KLM have retained their own respective individual identities, trade names, and brands. The group also includes low-cost brand Transavia - which technically consists of two airlines: Transavia France and Transavia Netherlands).

The three core businesses within the group are as follows:

1. Passenger Business
2. Cargo
3. Engineering & Maintenance

This analysis and explainer will focus primarily on the passenger side of operations.

Both carriers run their own operations from their respective hubs located at Paris-Charles de Gaulle and Amsterdam-Schiphol. It should also be noted, however, that the low-cost brand in the group, Transavia, also has bases located across France and the Netherlands. In France, Paris-Orly is among the largest, but flights also operate out of Lyon and Nantes, among several other French airports. In the Netherlands, Transavia also operates numerous flights out of Amsterdam but has significant Dutch operations at the airports of The Hague and Eindhoven.

Photo: Air France-KLM Group

As we've seen with other airline groups, the size of combined operations allows for better purchasing power with aircraft manufacturers. Bulk orders can be placed, and volume discounts can be obtained from OEMs like Airbus and Boeing. At the same time, transferring aircraft (or aircraft orders) between airline members of the group comes much more easily. A prime example of this as it relates to AF-KLM is the shuffle of Airbus A350s ordered by KLM and Boeing 787s ordered by Air France. The swap, as reported in 2019, saw Air France receive all of KLM’s A350 orders while the Dutch carrier took all of Air France's remaining 787 orders.

Cooperating to benefit passengers

While it's clear that the cooperation of the two airlines is beneficial from a business and profitability perspective, how does this partnership benefit passengers?

Those that frequently fly with one or both of these airlines will see that flight itineraries on offer demonstrate the integration of Air France and KLM flights and operations. If you're flying out of Amsterdam with KLM, but the airline doesn't serve your end destination, you'll be offered a connection at Paris Charles de Gaulle. It's a similar situation for residents of Paris, as booking with Air France may see a connection at Amsterdam Schiphol with onward service operated by KLM. This ultimately sees the two carriers operating numerous flights between the two hubs. Current FlightRadar24.com data shows up to eight flights per day - four operated by each airline.

While being two distinct airline brands, the two carriers also share a joint loyalty program for frequent flyers. Called “Flying Blue,” AF-KLM notes that it was the "first time in history that two European airlines combine[d] their loyalty programs." For frequent flyers and those loyal to one airline, the single loyalty program provides more options to earn and maintain elite status.

Photo:  Martin Abegglen  via Wikimedia Commons

Fleet differences

The 'one group, two airlines' approach is certainly retained when it comes to the current fleet composition of the two mainline carriers, as there are big differences in the aircraft types operated. When it comes to commonalities, the airlines currently operate a number of shared types:

• Boeing 777
• Boeing 787
• Airbus A330
• and Embraer E-Jets for regional subsidiaries

Despite these common types, each airline has their respective differences:

• KLM operates the Boeing 737 while Air France does not.
• Air France operates the A350, A220, and A320 family of aircraft, while KLM does not.

Photo: Airbus

How does the passenger experience differ?

With the two full-service carriers being French and Dutch, you would expect the travel experience to at least have a few differences. On the surface, one of the largest differentiators is that Air France offers a first class (La Première), while KLM does not. And, while Air France has had a premium economy cabin since 2009, KLM only introduced an equivalent cabin - Premium Comfort Class - in 2022.

Of course, differences go beyond just class offerings, and so we asked some of the airline group's most frequent flyers in an online message group about their thoughts on how the two carriers differed. There were many inconsistencies in responses, which gave a strong indication that passenger experience was heavily influenced by personal preferences, as well as the specific cabin crew team working on a particular flight on a particular day.

While this survey was by no means scientific, some loyal AF-KLM travelers favored KLM, while others (perhaps a slight majority) preferred Air France. These frequent flyers had a mix of experiences in terms of elite status recognition, where Air France cabin crew were more likely to pay special attention to Platinum-level Flying Blue members (even in economy class), while it was the opposite for other travelers, as KLM crews provided more preferential treatment for them. As another example, one contributor mentioned their preference for the KLM lounges in Amsterdam Schiphol, while others noted that the Air France lounges at Paris Charles de Gaulle were superior.

For business travelers, one positive differentiator for KLM is the airline's unique onboard 'souvenir' of Delft houses. Currently a collection of 103 different designs, these miniature ceramic houses are filled with Dutch gin and are modeled after real Dutch buildings. As noted by KLM, "these unique gifts have been around since the 1950s and are a true collector’s item! You receive one when traveling in Business Class on an intercontinental route."

Photo: KLM

One of the most common distinguishing factors listed by travelers was inflight meal offerings, as most AF-KLM frequent flyers cited Air France as having better food quality. With general French culture having a reputation for serving fine food, the country's flag carrier seems to have embodied the same passion. Indeed, numerous articles on the internet praise Air France for having some of the best inflight meals in the industry.

In fact, just examining Air France press releases demonstrates the carrier's focus on fine dining - particularly for its premium class passengers. Every few months the airline seems to launch a new menu that has been crafted by Michelin-starred chefs:

• In November 2021, meals were designed by French Michelin star chefs Chefs Régis Marcon and Mathieu Viannay.
• This was followed by another round of meals a few months later, also designed by French Michelin star chefs. This time menus were craft by Chefs Michel Roth and Anne-Sophie Pic.
• And, most recently, Air France announced that for 2023, 17 talented chefs have been selected to take turns creating exceptional dishes in La Première and Business, and at the airline's airport lounges.

In its most recent food-related announcement, Air France stated that it was "the only airline to partner with so many distinguished names in the world of cuisine [...] reasserting more than ever its role as ambassador of French fine dining around the world."

Which 'perk' would secure your loyalty? Collectible, miniature ceramic Dutch houses or a consistently gourmet inflight meal experience?

Photo: Air France

Not always a harmonious partnership

Anyone who has traveled through both the Netherlands and France will know that French and Dutch cultures are quite different from one another. The same goes for the national carriers of the two countries. A 2021 article by the Financial Times discusses the friction that has existed between the two main carriers of the group. Noting that tensions have been "bubbling for years," issues vary wildly from how money is spent to the independence of the smaller KLM to operate freely as a Dutch airline with a Dutch identity.

Discussing how the union of the two carriers is as much political as it is economical, the Dutch government upset their French counterparts when, in 2019, it purchased a 12.68% stake in Air France-KLM as a way to eventually match the 14.3% stake held by the French government. The share purchase was designed to protect the Dutch government's interests in the national airline and reportedly came after disputes regarding the direction of the airline group. According to reports published at the time, members of the French government felt that the deal was "more like that done by a corporate raider, rather than a state shareholder".

Photo: Air France

The turmoil around company control took a backseat as, in the following years, the airline group would be rocked by the COVID-19 pandemic and its associated travel restrictions. While the crisis may not have eliminated any underlying tensions and disagreements completely, this shared crisis has shifted the focus of both airlines toward survival and recovery, with cooperation being a necessity for this process. Indeed, the last notable piece of news having to do with disharmony between Air France and KLM seems to be in 2019.

The state of the union in 2023

So what's the latest news when it comes to this airline group? Well, it looks like the AF-KLM ambition to acquire some of its European competitors is stalling. At the end of October 2022, we reported that the Portuguese government was looking to privatize TAP Air Portugal, and that Air France-KLM CEO Ben Smith signaled his company's interest in taking a stake in the Portuguese carrier. Sadly, it's been several months, and still no developments on this front have emerged.

Photo: Anna Zvereva via Wikimedia Commons

A similar situation has been taking place in Italy with ITA Airways, with AF-KLM also being listed as a potential stakeholder in the carrier. However, as we noted in January, the group announced that it wouldn't be pursuing this possibility, instead deciding to remain a close partner through the SkyTeam alliance for now. This came a day after Lufthansa revealed that it would be pursuing a stake ITA, formally submitting its offer to the Italian Ministry of Economy and Finance. It will be interesting to see what the AF-KLM group will do to combat Lufthansa Group's rising dominance across Europe - particularly as it IAG and the Ryanair group are also major forces to deal with.

On the more positive side of AF-KLM news, the first Air France Boeing 777-300ER equipped with new and refurbished long-haul cabins took off from Paris on January 20th. This is one of 12 777-300ERs to be refurbished and will see updated seating across all classes, which will be fitted with charging ports, Bluetooth connectivity, and inflight WiFi.

Another thing to be looking forward to will be KLM's (and Transavia's) new Airbus jets. At the end of 2021, the Air France-KLM group announced a firm order for 100 A320neos alongside purchase rights for an additional 60 aircraft. Covering both the A320neo and A321neo, the first deliveries from this order are expected in the second half of 2023. With KLM being a fairly loyal 737 operator over the past few decades, this shift to Airbus narrowbodies was definitely seen as a blow to American manufacturer Boeing.

Ultimately, it's clear that based on fleet size, fleet diversity, and onboard offerings, Air France is the more dominant partner in the airline group. Reflecting on these major differences, it's understandable why the Dutch government would have felt like it needed to secure more influence in the group. Indeed, KLM seems to be playing 'catch-up' in terms of upgrading its narrowbody cabins and introducing a premium economy cabin. The Dutch airline would have also suffered some reputational damage with its Amsterdam Schiphol hub experiencing severe travel chaos and imposing a multi-month passenger-cap. Still, KLM has its own hardcore following, and many Dutch travelers are quite loyal to the airline - whether or not they're collecting those little Delft houses.

To conclude, we'll have to ask another obvious question: Of the two full-service airlines comprising the AF-KLM group, which carrier do you prefer flying with? Air France, or KLM? Let us know by leaving a comment!

Sources: Planespotters.net, Financial Times