Air France-KLM Finalizes 787 Deal


As Air France-KLM prepares to roll out the initial elements of a turnaround plan for Air France, the airline group confirms that it has closed its deal with Boeing for 25 787s, of which KLM will be the initial operator, starting in 2016. The airline group also has 25 787s on option.

Air France-KLM confirmed the airline group is the unidentified customer for 25 787-9s listed in Boeing’s order book when the airframer disclosed annual figures last week. Air France also will operate the 787, although at a yet-to-be-set date. An engine decision is pending.

Air France-KLM announced its intention to buy both the 787 and the Airbus A350 in September. An airline official says that talks are under way to finalize the firm order for 25 Airbus A350s. Those talks involve both Airbus and Rolls-Royce, the sole engine supplier.

The 787 order confirmation comes in what could be a pivotal week for Air France, with a board meeting likely on Thursday to set into motion the first elements of a turnaround plan under new CEO Alexandre de Juniac. The executive previously said the plan would involve a two-stage process, the first of which would focus on bolstering the existing cost-savings plan.

Decisions on a wider reorganization, aimed at reducing the airline’s debt level, boosting its short- and medium-haul performance and stepping up its overall competitiveness are not expected to emerge until June because of the need to coordinate with labor groups.

Boeing now holds 305 orders for the long-range 787-9 and 555 for the standard 787-8.

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