Research Proposal on "KLM Air France Merger"

Research Proposal 10 pages (3725 words) Sources: 5 Style: APA

[EXCERPT] . . . .

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… READ MORE

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