Skyteam

Project Outline

Alliances & Interfirm Relationships

Sophia Antipolis, 26.01.2006

Christian Czipura, Aydin Kocabas, Shaobin Wang

2

Skyteam – Project Outline

Agenda

1. Partners of the Alliance

a) Definition of Skyteam’s business

b) Figures of the Alliance and its members

c) Skyteam’s main customers

d) Skyteam’s main suppliers

e) Key success factors

2. Synergies: Steps of the value chain and magnitude of the deal

3. Methodology

4. Q&A

3

9 members from America, Asia and Europe

Partners of the Alliance

…

…

…

……

… …

… …

4

The Skyteam is continuously improving the alliance’s network

Possible Future Partners of Skyteam

Member of Skyteam

Goal

5

A worldwide network offering equivalent high quality wherever they travel

Definition of Skyteam’s business

Skyteam offers its 343.6 million annual

passengers a worldwide system of

more than 15,000 daily flights covering

all major destinations

Skyteam is a global airline alliance which values its passengers

and is focused on delivering the highest

level of customer experience in the

industry

Skyteam services to 684 destinations in

133 countries

Skyteam announced the launch of an

“Associate Program” in order to

continuously expand their network to serve their customers even

better

6

Skyteam is with 19.1% the second largest alliance by market share after Star Alliance

Figures of the Alliance and its members

Destinations CountriesPassengers (annually)

FleetOperating Revenue

Employees

47 7 9,5 million 68 1,4 billion USD 6.682

187 81 45,2 million 25119,1 billion EUR

73.405

129 65 20,6 million 102 30.056

101 49 22,2 million 154 3,7 billion EUR 19.932

280 43 55 million 348 9,7 billion USD 41.000

77 45 4,3 million 49 597 million USD 5.296

268 32 110 million 535 15,0 billion USD 66.500

90 32 21,4 million 117 6,9 billion USD 16.471

233 20 55,4 million 445 11,3 billion USD 39.105

Total 684 133 343,6 million 2.06944,9 billion USD22,8 billion EUR

298.447

7

Skyteam is focusing on quality seeking passengers willing to pay for services

Skyteam’s main customers

Non-business passengers

Price-consciousBusiness Passengers

Quality-Conscious Business Passengers

Short Routes

Long Routes

Low cost Airlines Network carriers:Regional Airlines

Network Carriers:Alliance Leaders

Charters

8

Suppliers coming from different sectors, offering possible synergies

Skyteam’s main suppliers

Airplane ManufacturerAirbus&Boeing

Insurance-, Computer-,

Media Comp.,…

Maintenance Companies

Airports & Airport

Services

Petrol Companies

Catering Services

9

Multiple key success factors have a lot on offer the customers

Key success factors

Reciprocal airport lounge access

between carriers

More available flights and easier

connections between carriers

Unified check-in for all carriers

One reservation network for all carriers

Consisted quality standards

across carriers

More fare options

Guaranteed reservations for

Elite Plus customers

Easy frequent flyer mile collection and

redemption across carriers

10

Alliance members generate synergies at every step of the value chain

Synergies: Steps of the value chain and magnitude of the deal

Customer

Development of Flight

SchedulesSales

Network Code Sharing Operations

11

Extensive analysis of Skyteam and the internal decision making, comparing the alliance to its competitors and conducting interviews

Methodology

Final Presentation

•Continuative analysis of Skyteam

•Future strategy and strategy development of Skyteam

•Comparison to Star Alliance and OneWorld

•Advantages and disadvantages of alliances, e.g. compare Skyteam to Emirates

•Alliance Management – how decisions are made

•SWOT of Skyteam

•Interviews with company representatives, most probably Air France (Sophia Antipolis)

12

Skyteam – an airline alliance

Questions & Answers

Thank you very much for your attention…

…and for your enriching questions!