Face To Face: AFI-KLM's Growth Plan

By Rupa Haria rupa_haria@aviationweek.com
Source: AWIN First

How will you achieve that?

The first thing is to implement the Air France-KLM Group’s Transform 2015 plan. We can also rely on some existing strengths. We have invested significantly in our Paris and Amsterdam facilities, including the new test cell for very big engines. We’ll continue to focus on listening to the request of the customers and not impose a solution on them. By continuing to ensure we keep up with new technologies, we can guarantee our growth in the long term. We also want to have a presence in areas such as China, Asia and South America.

Where do you see the biggest opportunities for growth?

If you look at demand in our industry, you can see steady growth of roughly 3% globally. If you focus a little more on what kind of product is growing, new-generation aircraft are growing fastest, I would say 8-10%—this is a balance between aircraft retiring and new aircraft entering into service. Looking more closely again at the areas in which this growth is particularly high—Asia, China, India (even if India is still a small market, it is growing fast), South America, Eastern Europe and Russia—today we are present in all these areas, whether we have contracts, or whether we are implementing some facilities to be closer to our customers.

Is there an increased emphasis on growing partnerships in China?

We cannot say we invest more in China than in Europe. We will continue to invest in our facilities in Europe, but of course we have to be present in this growing market [China], so we will also invest in the region. We have to be very open to partnerships of any kind. We are working with many partners around the world and I think there is a real opportunity to catch some growth from these emerging markets.

What new services are you introducing to the market?

Our large-engine test cell at Charles de Gaulle in Paris is now running. It is a big move for us as it makes us a full alternative to GE. We are fighting a friendly fight every day with the OEM; there is still big competition in this arena. The fact that we are now 100% capable for the GE90 is very important. The test cell will also be capable of handling all the new big-engine technology.

What about future developments?

We are working hard on new products like asset management. We are growing that activity and we think there is a real opportunity to leverage our big assets. In 2014, we will invest significant sums of money into setting up a new facility here in Paris for aerostructure activity. Our customers are very keen to be helped with day-to-day on-wing services, so we will also enhance our engine capability for on-wing services.

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