In the current economic context, top priority must be given to the recovery and improvement of the performance of Air France and of KLM, which must call up all reflection and energy in order to better address these challenges. Consequently, the setting-up of a full-dedicated Air France-KLM holding, which was to be implemented at the beginning of 2012, has been put off to 2013.  

In these circumstances, Pierre-Henri Gourgeon has resigned from his duties as Chief Executive Officer of Air France and Air France-KLM. The Board of Directors has paid tribute to the action that he took with courage and to the numerous measures efficiently implemented within difficult conditions since he took up his duties on January 1, 2009.  

In order to address the situation, the principle of sole leadership is essential, both within Air France and the Air France-KLM group.  

Therefore, the Appointment Committee of Air France-KLM has put forward to the Board of Directors of Air France-KLM, which approved it, the candidacy of Alexandre de Juniac to the duties of Chairman and Chief Executive Officer of Air France; this appointment will be subject to the approval of the Board of Directors of Air France and will become effective after the opinion of the ethics committee (Commission de déontologie) provided by the law of January 29, 1993.  

Alexandre de Juniac, surrounded by an experienced and younger team including Alain Bassil, Frédéric Gagey, Bruno Matheu and Florence Parly, will submit to the boards of directors of Air France and of Air France-KLM the measures aiming at improving the performance of Air France, and will be responsible for following-up such measures over time.  

During the period prior to the setting-up of the Air France-KLM fully dedicated holding, Jean-Cyril Spinetta and Leo Van Wijk, who presided the setting up of the Air France-KLM group, will be in charge of its strategic coordination. Jean-Cyril Spinetta, Chairman of the Board of Directors of the Air France-KLM group, has been appointed as Chairman and Chief Executive Officer of the Air France-KLM group. He has suggested to the Board of Directors, who has accepted it, that Leo Van Wijk be appointed as Deputy Chief Executive Officer of the Air France-KLM group. Philippe Calavia will continue to be in charge of the financial management of the Air France-KLM group.

President & CEO Peter Hartman: “I am proud of the new Managing Board of Directors. We have been carrying out intensive discussions with Camiel Eurlings since December concerning the role he might play within KLM. I am extremely delighted by the outcome of these discussions. I am also very pleased to welcome Erik Varwijk to the Board.”

Eurlings’ main responsibility will be Air France - KLM Cargo. He is taking over this director’s portfolio over from Mr Hartman. Eurlings: “I have considered many serious offers over the last few months, but it is with complete conviction that I have chosen KLM, the pride of our nation. KLM is vitally important to the Dutch economy and, together with partner Air France, a major player on the world stage. It is a company that is focused on the future, has a long Dutch tradition and highly dedicated workforce. My responsibility for Cargo returns me to my original discipline as a logistical engineer. It is an extremely interesting job which will also enable me to better plan my private life.”

Michael Wisbrun, Executive Vice President KLM Cargo and chair of the Joint Cargo Committee Air France KLM Martinair, has been proposed for a new AIR FRANCE KLM position. An announcement will follow in due course. “I have led KLM Cargo with great pleasure for almost twelve years and am looking forward to working with Eurlings over the coming months.” Wisbrun will handover his membership of the AIR FRANCE KLM Group Executive Committee.

Erik Varwijk has worked for KLM since 1989 and for the time being remains Executive Vice President Commercial Passenger Business. As a director he will retain his current responsibilities, both within AIR FRANCE KLM and KLM. “I am delighted to be able to take this step,” Mr Varwijk said. “KLM is taking an important step in anchoring this part of our business to the Board of Directors is an important development for KLM.”

The proposed appointments of Camiel Eurlings and Erik Varwijk will be presented for approval at the Annual General Meeting of Shareholders on 1 July 2011. The Works Council is being consulted on the appointments.