Air France-KLM’s Socio-Economic Impact: A Comprehensive Study

Air France-KLM’s Socio-Economic Impact: A Comprehensive Study

  • The Group generates 1.9% of French GDP and 2.3% of Dutch GDP;
  • • An estimated 552,570 jobs in France and 267,996 jobs in the Netherlands depend directly or indirectly on Air France-KLM;
  • • For each job created by Air France-KLM in France, 11 jobs are created in the French economy. For each job created in the Netherlands, 9.2 jobs are created in the Dutch economy.

(IN SHORT) Air France-KLM Group has released a study highlighting its socio-economic impact in France and the Netherlands. The Group contributes 1.9% to French GDP and 2.3% to Dutch GDP, generating €48.9 billion in France and €21.9 billion in the Netherlands. Air France-KLM supports 552,570 jobs in France and 267,996 jobs in the Netherlands. For every direct job, 11 additional jobs are created in France and 9.2 in the Netherlands. The Group’s activities benefit all French regions, particularly Île-de-France, and enhance global connectivity for the Netherlands via Amsterdam-Schiphol Airport. The study, conducted by Professor Herbert Castéran, underscores Air France-KLM’s significant role in economic growth and job creation.

(PRESS RELEASE) Amstelveen, Netherlands, 2024-Jun-22 — /Travel PR News/ — On the occasion of its 20th anniversary, Air France-KLM Group has unveiled a detailed impact study showcasing its significant socio-economic contributions to France and the Netherlands. Conducted by Professor Herbert Castéran from the Institut Mines Télécom Business School, the study quantifies the benefits derived from the Group’s core activities: passenger transport, cargo, and aircraft maintenance.

Economic Contributions

The study reveals that Air France-KLM contributes 1.9% to French GDP and 2.3% to Dutch GDP. The Group’s activities generate an economic impact of €48.9 billion in France and €21.9 billion in the Netherlands, equating to €723 per inhabitant in France and €1,228 per inhabitant in the Netherlands. For every euro invested, Air France-KLM generates €3.6 in France and €3.4 in the Netherlands.

Job Creation

Air France-KLM’s operations support a substantial number of jobs, with 552,570 in France and 267,996 in the Netherlands, including direct, indirect, and induced employment. This translates to 11 additional jobs created for every direct job in France and 9.2 in the Netherlands. In 2022 and 2023, the Group hired 9,000 permanent staff and continues to actively support youth employment through various programs.

Regional Benefits in France

Air France-KLM’s impact spans all French regions. For instance, the Occitanie region benefits from significant investments in aircraft and aeronautical parts, primarily from Airbus. The Bourgogne-Franche-Comté and Grand Est regions see contributions through purchases of wine and spirits for in-flight services. The Île-de-France region, housing the Group’s headquarters and major airports, remains the primary beneficiary, contributing 3.2% to the region’s GDP.

Impact in the Netherlands

In the Netherlands, KLM’s operations at Amsterdam-Schiphol Airport enhance the country’s global connectivity, supporting international business and exports. The Group’s cargo division, Air France-KLM Martinair Cargo, is crucial for transporting goods like flowers and medicines.

Methodology

The study distinguishes four types of economic impacts: direct (staff remuneration and consumption), indirect (passenger spending and airport activities), induced (spending by direct and indirect beneficiaries), and catalytic (regional business attractiveness due to air traffic).

This comprehensive analysis underscores Air France-KLM’s role as a vital economic engine in both France and the Netherlands, driving growth, employment, and regional development.

Note on methodology:

The data in the impact study reflect the assessment of the socio-economic benefits of the Air France-KLM Group’s activity, which distinguishes four types of economic impact:

– Direct impacts, including the remuneration of Air France-KLM Group staff working in their home region, as well as the Group’s consumption of goods and services.

– Indirect impacts, resulting from the Air France-KLM group’s activities, notably spending by passengers traveling on Group aircraft, as well as the economic activity of airports associated with the Group’s activities.

– Induced impacts, which are determined by the spending of the beneficiaries of direct and indirect impacts, including public bodies that benefit from tax revenue induced by the Air France-KLM group’s activity.

– Catalytic impacts, which represent the attractiveness of a given region for businesses, thanks to the Air France-KLM group’s air traffic to the area.

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Source: KLM

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