KLM/Air France Merger Allow KLM

¶ … KLM/Air France merger allow KLM to continue as a socially responsible company?

Being socially responsible is not new for Air France-KLM group. The two airlines are well-known for their enduring assurance of safeguarding environment, encouraging moral attitude and underneath communities. Presently, with the effective amalgamation of KLM with Air France, the size of their group and their strategic positions in the market are encouraging for KLM to achieve greater heights with regard to being a socially responsible company with the co-operation from Air France. ("Corporate Social Responsibility Report 2007-08," n. d.)

'KLM Royal Dutch Airlines' was formed in the year '1919' positioning it to be the oldest airlines of the world functioning with its own name. Air France and KLM amalgamated to constitute Air France KLM in the year 2004. ("Air France-KLM is very pleased to take part in the second round of CSA'S privatization process," n. d.) The merged companies of KLM Royal Dutch Airlines with competitor Air France constitute the globally largest airline by revenue and stand third only next to American Airlines and United Airlines from the point-of-view of passenger traffic. The fundamental norm of the merger was to constitute the Airline into One group, two airlines and three core businesses. Irrespective of the fact that the two airlines are merged under Air France-KLM they operate under separate brand names. As per the agreement the KLM continue to be Dutch with 51% of voting rights held by the state and two foundations. The core activities of the airlines are passenger service, cargo service and maintenance. (Turner; Pasiuk, 2005)

The 'KLM Royal Dutch Airlines' and Air France was inclined to remain advanced of the developments happening around and formed the biggest airlines in Europe via the 1st significant merger of airlines across the borders to happen in several decades. (Tagliabue, 2003) The amalgamation paved way for the most powerful 'airlines group' in Europe in terms of 2 strong names of brands as well as aviation centers, namely 'Paris Charles de Gaulle' as also 'Amsterdam Airport Schiphol'. Both the airlines share the liabilities on 3 main operations at the same time upholding their own identities, such as 'passenger service', 'cargo operation' as also maintenance of aviation. ("Air France-KLM is very pleased to take part in the second round of CSA'S privatization process," n. d.) Air France and KLM have managed their alliance meticulously and specifically they have devoted themselves in taking advantage of the situation which is proportionate in terms of marketing and revenue generation, cost reduction and synergy and reduced competition. They operate concentrating on the long-term vision and objectives. (Doganis, 2006)

Being socially responsible is of prime importance for KLM and they visualize fixing the norms in the international aviation arena even at the post amalgamation phase with Air France. ("2006 | 2007, a year in perspective," n. d.) The strategy of the Air France and KLM group has tried for integration of Corporate Social Responsibility into all the fields, at almost all of the group stages, in all types of business as well as for all concerns. 'Air France-KLM' group has indicated its assurance to perpetual improvement in its statement on 'corporate social responsibility', agreed upon during 'July 2006' by the Chief Executives of the two airlines. Such assurances have been again strengthened by the during 'March 2007' of a 'Group-wide Climate Action Plan' adoption as well as the agreement during 'February 2008' with regard to "a Social Rights and Ethics Charter" within "the framework of the European Works Council." ("Corporate Social Responsibility Report 2007-08," n. d.) The airlines works on its action plans evolving from such joint policies variedly, permitting for legitimate as well as 'cultural' changes as also particular situations pertaining to the local environment. ("Corporate Social Responsibility Report 2007-08," n. d.)

The 'Quality, Environment and CSR' wing of the 'Air France' company chalks out and encourages 'Corporate Social Responsibility policy' entailing to implementing it by helping the various units and works in co-ordination with 'company-wide' controlled necessities, and "applications of French NRE legal provisions for Air France-KLM group." ("Corporate Social Responsibility Report 2007-08," n. d.) It indicates 'environment policy' as well as remedies as also prospective policies that influence the flight schedules like 'air quality', 'noise pollution' as also changes in 'climate'. It confirms consonance with the airlines provisions and the security "management system and is also responsible for the Quality-Safety-Environment management system." ("Corporate Social Responsibility Report 2007-08," n. d.) The CSR wing of the KLM Company is entrusted with the stimulations of 'CSR performance in all businesses' as also 'operational sectors' by infusing processes, fixing targets as well as monitoring crucial 'indicators'. At least one time in every year it formulates its vision with regard to the forthcoming 'Corporate Social Responsibility' concerns to be addressed by means of collaboration with the outside specialists as well as stakeholders in the yearly 'CSR program'. It is also liable for confirming to the consistency of the policies and norms of the CSR with that of the 'UN Global Compact principles'. ("Corporate Social Responsibility Report 2007-08," n. d.)

'Air France KLM' group is dedicated towards generating a "socially liable group on both national and international scale." ("Air France KLM corporate social responsibility statement," n. d.) Their functioning caters to the increasing requirements of global transition, thereby according for economic improvement by linking the various areas and to social improvement by means of linking 'cultures'. 'AIR France KLM' is devoted to local improvement in fields wherein they function, specifically in respect of 'economic development' and 'employment'.. Irrespective of the vague economic environment, Air France-KLM would go on generating a 'high' standard of social advantages for their employees. This is considered to be 'one of the' aims of the 'Social Rights and Ethics and Charter' concluded during 'February 2008' by the 2 companies as well as 'their European subsidiaries'. The objective has been to improve the employability by means of 'human resources management', ensuring the security of jobs. ("Corporate Social Responsibility Report 2007-08," n. d.)

The financial transparency has been restored by 'Air France KLM' by emphasizing on the ethical, social and environmental elements in deciding the legality of the employee saving schemes like creation of a public pension reserve fund. 'Air France KLM' emphasizes the stipulations administering the preparations and organization of the function of the board of directors and internal regulation system infused by the company in order to safeguard themselves with greater transparency in contradiction to the different kinds of risk. (Idowu; Filho, 2008) 'Air France KLM' thus promote safe as well as encouraging working environment and encourage 'mobility' as also 'employment' by means of personal growth as well as by increasing 'skills'. The 'AIR France KLM' group endeavors to encourage differences as evident in the society and to make allow equal scope to all the employees. They foster social discussion as a 'guiding principle' and make certain 'that their staff as well as their representatives' is continually being 'consulted as well as informed'. ("Air France KLM corporate social responsibility statement," n. d.)

'KLM' even after its amalgamation with 'Air France' has several nationalities among its staff that is an indication "of their multicultural society." ("2006 | 2007, a year in perspective," n. d.) They have a vigorous policy to steer talent "from ethnic minorities into management locations." ("2006 | 2007, a year in perspective," n. d.) They also favor personnel that have problems in 'writing' or 'reading', and assist them developing their 'linguistic' talents. The group induces a larger extent in overcoming 'incapacity' as well as with regard to 'the employability' of their personnel 'throughout their careers'. Their social commitment definitely does not end 'at the gates'. The 'program' of 'AirCares' of the 'Air France KLM' group entail 'funtional' as well as 'financial' favor to projects which provide advantage to children in 'developing' nations. It has the favor of the staff of the program on 'Flying Blue frequent flyers'. Every year, AirCares choose 4 projects globally, wherein each is greatly favored for 3 months, "not only financially but also by according free tickets to the concerned organization" and according a greater base of 'publicity campaigns' which are tailor-made. ("2006 | 2007, a year in perspective," n. d.)

The projects of 'AirCares' frequently are converted into 'programs' like 'Doctor2Doctor' which have become permanent, in collaboration with the 'VU University Medical Center' of 'Amsterdam'. It is to be noted that this program functions on developing 'pediatric health' in many under developed nations. Many 'staff members' are associated in 'social projects', in Netherlands as also around the globe. 'Wings of Support', an effort of the flight staff of KLM 'provides' support for 'education' and 'housing' to several 'children' in various nations. It has already accomplished over '184' such projects in thirty-one nations. Another endeavor is the scheme of 'Pilots without Borders' wherein 'KLM' personnel take part in assisting 'organizations' in under developed nations and appoint 'pilots' as well as function 'flights in the remote places'. ("2006 | 2007, a year in perspective," n. d.) 'AIR France KLM group' has agreed to adopt Human Rights, to contradict all kinds of 'child or forced labor', 'to apply the law' as well as to request their providers as also 'sub-contractors' to accord 'with such principles'. ("Air France KLM corporate social responsibility statement," n. d.)

After their agreement in the Global compact of the UN and depending upon their 'vision of long standing business management', 'AIR France KLM' encourages setting 'corporate social responsibility' norms 'in the airline industry'. They perform this by exercising 'a set of' properly indicated assurances to make certain that viable development continue with 'quality of environment' as well as 'social' development. 'AIR France KLM' is associated actively in fixing international norms for a liable aviation industry. They are devoted towards advancing environmental safeguard which surpass across the controlled 'compliance'. The 'Air France KLM Group' has an enduring devotion both towards safeguarding 'environment' as well as encouraging 'social values'. The group is conscious of the way its functioning influences 'environment', specifically wherein 'noise' as also 'emissions' are prominent and strive to reduce their influence to the lowest possible levels. ("Air France KLM corporate social responsibility statement," n. d.)

The group strives to initiate the 'best' accessible 'technologies in fleet renewal' as also to make the 'most' effective provisions as well as functions to decrease the 'noise' and confine 'emissions'. They take on a liable strategy of confining 'world emissions' relating to 'carbon dioxide by endorsing the' collaboration of 'air transport' with regard 'to a fair Emissions Trading Scheme'. 'AIR France KLM' has improved 'eco-designed services' by evaluating 'thoroughly' all of the 'sites' as well as procedures to detect scopes wherein they could develop their 'environmental' functioning. They make certain that all scopes of 'KLM', 'Air France' as well as their associates make consonance with 'regulations relating to 'environmental' safeguard. 'Air France KLM' promotes 'awareness' as well as improves 'creativity among' all of their staff by means of favoring 'innovative projects' which determines the 'environmental' contexts. 'They request their subcontractors' as also 'suppliers' to execute methods for decreasing the environmental influence of their operations. ("Air France KLM corporate social responsibility statement," n. d.)

As a company which is socially responsible, 'Air France KLM group' acknowledge the 'environmental' issues relating to 'aviation'. ("2006 | 2007, a year in perspective," n. d.) The contribution of Air France-KLM in the context of variation in climate is the result of 'greenhouse gas emissions' produced by the 'aircraft engines'. Air France-KLM has received as well as accepted its liabilities with regard to the earthly concern 'and is' empowering its initiatives to eradicate its influence with regard to climate variation. The 'Air France-KLM' group is of the opinion that it is significant for 'air transport to assume its' liability for climatic variation. During the year '2007', 'Air France KLM' accepted a climatic program which was ambitious which brought about a 'positive action' plan, one targeting to accord "air transport into the European Emissions Trading Scheme." ("Corporate Social Responsibility Report 2007-08," n. d.) It is revamping all of the different units in its activities to reduce the influence of its 'carbon' residues by developing the functional system, revoking 'ramp vehicles' as also 'equipments with electric ones', as also decreasing consumption of energy on its various 'premises'. KLM and Air France have openly assured of reducing 'carbon dioxide -- CO2 emissions'. ("Corporate Social Responsibility Report 2007-08," n. d.)

Ignited partly by the increasing expenses of fuel, 'Air France KLM' has resorted to many methods in current years to enhance the effectiveness of the aircraft of KLM. A considerable portion of the aircrafts has been replaced, and have been planned to be in the coming years, with the developed and cleaner and quieter aircrafts. To illustrate, Boeing 777s, infused into the fleet of Air France KLM Group since the year 2004, use about 25% less fuel compared to the last 'generation of wide bodies' and create noticeably lesser noise, 'in the air' and at times of 'landing' as well as 'taking off'. Millions and millions of euros have been put "in soundproofing houses around schiphol and noise pollution has" remarkably been reduced to half compared to the year 1990. ("2006 | 2007, a year in perspective," n. d.)

Air mobility is not the only field wherein one could 'make environmental' safeguards. 'Air France KLM' has time and again been reducing the consumption of energy of tools and buildings. In consequence of this their 'energy' efficacy has enhanced considerably. A great deal o results has also been attained in maintenance of aircraft. Their 'Engineering and Maintenance Business' has improved 'a new eco-friendly' measure of 'cleaning engines' adopting 'high pressure water' rather than 'chemical solvents'. As the system is also speedier, 'this maintenance' could be worked out more frequently and the fleet of 'Air France KLM' flies with cleaner and consequently 'more fuel efficacy engines'. ("2006 | 2007, a year in perspective," n. d.)

'Air France KLM' is already devoted to speed up the process of the advancement of 'their fleet by putting in 2 billion euros' per annum for the next 3 years. They are also devoted to according 'strong' co-operation 'for research into energy' efficacy, to assist their clients to disregard carbon dioxide emissions produced by their fleets, to continue with their 'environmental' safeguard 'programs', and to transit 'all our resources' in the direction of decreasing emissions 'also on the' land. By developing their continuity as well as their capability to take decisions, to act promptly as well as make innovations, 'they are better equipped' to confront the obstacles of the future. To go with their dominating role at a moment when certain airlines are just 'disappearing' from the scene, others are merging, 'and new competitors with global' objectives are organizing strong fleets and to attain continuing growth, adjusting 'profitable' development with the struggle against environmental variation. ("Corporate Social Responsibility Report 2007-08," n. d.)

It is evident that 'technical' steps to decrease 'environmental' influences are coming closer to their confinements. 'Air France KLM' already has included in its fleet the most 'modern', 'quietest' and 'cleanest' aircraft and the aircraft industry do not anticipate any considerable developments applying the 'current technology'. Contrary 'to the automotive industry', a substitute 'fuel' would possibly 'not be' accessible in the coming one and half to two decades. However, 'there are other' modes of decreasing 'environmental' influence. A considerable reduction of 6 to 12% reduction on use of kerosene could be attained via the more effective application of 'European airspace'. It is again considered to be only a hodgepodge of independent national air traffic regulatory systems' that accord the aircraft that hover over Europe 'from one to another'. 'The aircraft do not' take 'the most logical or' effective 'routes'. The advent 'of a common European air traffic regulatory system' involving 'Single Sky' might generate a substantial development.

'Flight times' among destinations of 'Europe' 'could be' reduced by various 'tens of minutes'. Extra times and therefore 'emissions' could also be decreased by applying the 'runway system at airports' in a sensible manner. The European recommendation for establishment of 'an emission trading system' is specifically an efficient method of regulating carbon dioxide 'emissions'. Airlines might be capable of purchasing 'emission rights from companies' which continue 'within their CO2' generating ceilings. This system might improve firms 'to make investments in less environmentally-hazardous production' procedures, to illustrate by applying solar energy, as a result of which they accumulate 'more tradable CO2 rights'. This might justify the norm 'that the polluter' accords and might also endanger 'the industry' to put in added policies of reducing emission. 'An emission trading system' might obviate 'the competition if it were' infused at the level of Europe 'only and not' adopted globally. The 'Air France KLM' group is of the view that the extra surcharges on tickets do not decrease the environmental influence 'of flying'. They do not dissuade consumers traveling 'on holiday by flight', 'planning business trips or offering cargo'. Additional taxes would not assist in resolving the issue of 'environmental' concern.

Moreover, 'such' steps particularly it is infused 'only in Europe or Netherlands' might severely abate competition with, to illustrate U.S. As well as 'Asian carriers'. The taxes might also vanish 'into the public offers' as well as prevent 'airlines of an incentive to' put in added 'innovative environmental' methods. Another method of adjusting 'economic' development as well as 'environmental' influence is to handle a primary discussion with regard to the application as also the 'future of Schiphol'. To reduce noise pollution, 'Air France KLM' thinks significant development are still probable via the developed application of 'runway system of Schiphol' by favoring various 'approach' methods as well as 'quieter takeoff' along with landing propositions. This would necessitate a primary change of prevailing 'noise legislation' with regard to 'Schiphol'. The present law is very rigid as well as 'complicated and stands' against attaining practical remedies to decrease 'noise pollution' that 'Air France KLM' is 'developing in' collaboration 'with their partners' prevailing 'in the area'. KLM could comply with the social targets only it has a potential of continuous as well as viable development. KLM has taken their ambitions vigorously and have discovered a partner 'in Air France' which completely 'supports their' approach.