Airfrance

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Corporate Venturing at Air France KLM
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This case was prepared by Vareska van de Vrande, Rotterdam School of Management, Erasmus
University. We wish to thank Ignaas Caryn, corporate venturing manager at AIR FRANCE KLM, for his
information and opinions.
This case is based on field research data. It is to provide material for class discussion rather than to
illustrate either effective or ineffective handling of a management situation.
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than to illustrate either effective or ineffective handling of a management situation. The author has
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Corporate Venturing at AIR FRANCE KLM

In 2009, KLM, together with Schiphol, TU Delft, and Rabobank, founded the Mainport Innovation
Fund (MIF) as a vehicle to invest in new, entrepreneurial opportunities in the field of sustainable
innovation in the aviation industry. During the first year, the MIF has invested in two start-up
companies: Casper – a company focusing on the monitoring and analyzing of air traffic, and MPS
– a manufacturer of professional flight simulators for the aviation training industry.
In December 2011, Ignaas Caryn, corporate venturing manager at AIR FRANCE KLM, was
sitting at his desk, preparing his final recommendation to the CFO of KLM regarding two new
investment opportunities for the Mainport Innovation Fund. One investment, ALPHA, represented
a startup firm that offers innovative electronic smart cards and tags, targeted at the aviation
industry. The other one, BETA, was a startup firm that had developed an innovative solution to
the generation of windpower with glider planes. Both cases met the initial investment criteria of
the Mainport Innovation Fund. The following week, the MIF would meet in order to reach an
investment decision. The CFO of KLM was a member of the investment committee and needed
Caryn's input for these two opportunities before the end of the day.
Air France – KLM
KLM Royal Dutch Airlines was founded on 7 October 1919 to serve the Netherlands and its
colonies. Today, KLM is the oldest airline still operating under its original name. After its first flight
on 17 May 1920, the company carried 440 passengers and 22 tons of freight in that year and
commenced scheduled services in 1921. In the years that followed, KLM expanded their
operations to over 15,000 passengers in 1930. While the company stopped operating during
World War II, it quickly recommenced flights after the War and was the first continental European
airline to start transatlantic scheduled flights in 1946. In 2011, KLM carried over 25,000
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passengers and has flown over 82,000 passenger-kilometers .
In September 2003, KLM decided to join forces with Air France. Since the merger in May 2004,
Air France and KLM Royal Dutch Airlines have become the leading European airline group: one
group, two airlines, and three businesses. Each airline has retained its individual identity, trade
name and brand. The three core businesses are Passenger Business, Cargo, and Engineering &
Maintenance. Both airlines run their own operations from their respective hubs Paris-Charles de
Gaulle and Amsterdam-Schiphol. Together, Air France and KLM carry more than 71 million
passengers per year. Currently, they operate more than 594 aircrafts enabling them to fly 2,500
daily flights to 236 destinations worldwide. AIR FRANCE KLM’s turnover in the 2009-2010
financial year was 20.9 billion euros. KLM and Air France together employ more than 108,000
people.
Mission. With Air France, KLM is at the forefront of the European airline industry. Offering
reliability and a healthy dose of Dutch pragmatism, 32,000 KLM employees work to provide
innovative products for its customers and a safe, efficient, service-oriented operation with a
proactive focus on sustainability. KLM strives to achieve profitable growth that contributes to both
its own corporate aims and to economic and social development.
Vision. KLM wants to be at the front of the industry by being smarter than the rest. By merging
with Air France, KLM has occupied a leading position in the international airline industry. KLM
wants to be the customers’ first choice, to be an attractive employer for its staff, and a company
that grows profitably for its shareholders. With smart alliances and by pioneering new
destinations, KLM offers global access through its extensive network. By responding to market
opportunities and technological developments, KLM offers customers a contemporary product.
Customer focus. Both the modern traveller and freight companies require as much flexibility as
possible and a wide range of choices. The strong transfer product offered by KLM at Schiphol
airport is the foundation of a high-quality network of direct European and intercontinental
connections for passengers and cargo. KLM’s customer-oriented service is evidence of its
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IATA World Air Transport Statistics
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pragmatic and entrepreneurial Dutch spirit. KLM focuses on the individual behind the customer
because KLM understands that every customer is different.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is more than just a label for KLM. Together with Air
France, KLM wants to set the standard for an integrated approach in the airline sector, directed
at customers, employees and society. By signing the United Nation’s Global Compact, KLM has
contributed to the UN Millennium Development Goals. In 2011, Air France-KLM was placed at
the top of the Dow Jones Sustainability Indexes sector Airlines for the seventh consecutive year.
In order to implement CSR within the company, KLM has defined five key areas that shape their
CSR policy. The first area of attention is to push back climate change through sustainable flying
and sustainable catering. KLM supports the development of sustainable biofuels and has set up
a joint venture (SkyNRG) together with the North Sea Group and Spring Associates to further
spur the development and availability of biofuels. On 23 November 2009, KLM operated the
world’s first demonstration flight with passengers on board using sustainable biofuels that did not
require any changes in the engine. This flight was followed by another commercial passenger
flight from Amsterdam to Paris (171 passengers) using biokerosine. Another focal point to push
back climate change is the development of sustainable catering, using products that contribute to
conservation and counteract climate change such as organic and Fair Trade products. Second,
KLM aims to minimize the impact on its environment by not only meeting the environmental
regulations, but also investing in putting waste to energy, eco-friendly maintenance and recycling,
and a number of noise reduction measures. Third, KLM is committed to building a sustainable
relationship with their customers by developing a sustainable and innovative product range, for
example by providing passengers the option to calculate and offset CO2 emissions, providing
organic meals and ethical and Fair Trade products included in the Duty Free selection onboard,
and by providing reusable headphones with a better quality of hearing. Fourth, KLM seeks to
continuously interact with their community to further enhance the implementation of CSR. To do
so, KLM engages in a strategic partnership with the WWF-The Netherlands and numerous other
initiatives to strengthen the relationship with society. Finally, KLM promotes the sustainable
development of its employees by promoting health and safety in the workplace, boosting staff
members’ employability through training and by improving mobility and flexibility, and by
embracing diversity.
The Airline Industry
As in most industries, the airline industry is subject to its own set of challenges. Since the 1970s,
air travel has expanded tremendously, with total revenue-passenger-kilometers adding up to 435
billion in 2011, compared to less than 350 billion in 2006. In fact, as demonstrated in Exhibit 1, air
travel has expanded over tenfold in the past 40 years while at the same time, the cost of air
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transport has fallen by more than 60% . However, despite the rise of customers and the fallen
costs, the airline industry is subject to a number of forces, putting constant pressure on
profitability in the industry. Competition in the airline industry is very intense, with many airlines
offering connections on the same routes, with a similar product offering. Moreover, the cost
structure of air transportation is largely fixed at the level of the aircraft, making lower prices only
attractive when larger aircrafts can be used. Furthermore, exit barriers are high, while the
industry regularly sees new entrants. In fact, during the past 40 years, over 1,300 new airlines
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were established . In addition, the bargaining power of both suppliers and customers is very
high. A large proportion of the airline travellers is very price sensitive, especially among the new
customers that drive the growth in demand in mature markets, while switching costs between
airlines are very low. On the supplier side, it is important to understand that aircraft
manufacturers are highly concentrated (there are eight major aircraft manufacturers) and
switching barriers occur due to the long lead-time of new aircrafts. Also, airports are often local
2
IATA, Air Transport Market Analysis, December 2011
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monopolies with little competition from nearby airports, providing them with a strong bargaining
position. Finally, the government plays a crucial role by setting rules and regulations with regards
to safety and security, but also towards environmental issues, such as noise reduction and
reducing local air pollution. Moreover, the government plays an important role by putting
restrictions on foreign direct investment and M&A activity, and putting pressure on airlines to
serve non-profitable locations or to move their hub. To conclude, the airline industry is subject to
a number of forces, making the industry as a whole a lot more challenging.
Looking at the future, a few things can be expected. First, airline travel will continue to expand
and by 2050 more people will be travelling than ever before and at a frequency that is higher than
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ever before . Evidently, this puts an increasing pressure on the infrastructure that is needed to
fulfil this demand. More aircrafts in the air means more air traffic “management”, including aircraft
separation and flight trajectory planning. Also, airports take a significant toll on the increasing
demand as more passengers increase the burden on security procedures and airport efficiency,
while more aircraft on the ground also increases the need for tighter planning of aircraft
movement, luggage handling, and other services related to air travel. Finally, many of these
developments will and should be enabled by technological innovation that will help the airline
industry to reduce costs, increase speed, and mitigate their environmental impact. For airline
companies, most of these technological advancements will be in the area of aircraft configuration
(more efficient aircraft) and improved engines (lower fuel consumption or alternative fuels), but
also with regards to information sharing to allow lower separation margins. In addition,
technology plays an important role in improving the efficiency and effectiveness of security
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processes for passenger and luggage screening .
Innovation and Venturing at KLM

In 2006, KLM decided to set up a dedicated innovation unit within the commercial division of the
company. Before 2006, innovation within KLM was organized within the different business units
leading to long lead times on new product development projects and a low success rates of new
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innovations. However, during the first decade of the 21 century, competition within the industry
increased due to the rise of low cost airlines and airlines from the Middle East, making
sustainable corporate growth more challenging. Management was convinced that innovation
needed to be put on the agenda in order to keep current customers and attract new ones.
First, an innovation department focusing on satisfying customer demands was set up within the
commercial division. Innovation projects were carried out in virtual teams, consisting of people
from different departments, mostly with other responsibilities as well. Within a year, innovation
became a separate department with a dedicated budget and a team of 4 FTEs.
After the integration with Air-France was completed in 2008, the innovation department was
moved to the corporate level and the team grew to 7 FTEs. Because of ongoing convergence
between the strategy and innovation departments, the two departments were integrated in 2010,
making innovation an even more strategic activity within the company. Growth and innovation as
the engine behind growth has thereby become a central goal. Currently, the innovation strategy
of KLM consists of four main pillars. First, there is the Innovation Competence Center, focusing
on problem solving and the creation of opportunities by delivering frameworks, tools, techniques,
and useful networks in order to help the business improve their innovation performance and
scanning of new business opportunities and game changing trends. Next, the Innovation Engine
stimulates and accelerates innovation by driving a culture that supports innovation at all levels, in
all functions, and in all activities. The goal is to secure an innovation mindset in the entire
organization, as widespread and anchored as KLM’s attitude towards safety, and to promote
internal collaboration and cross-pollination through programs, events and internal collaboration
platforms. Third, Innovation@KLM is a focused portfolio of a limited number of cross-divisional
breakthrough innovation projects, within pre-defined innovation themes. It also supports the
4
IATA Vision 2050, Singapore, 12 February 2011
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businesses with their innovation projects via Open Innovation constructions. Finally, Corporate
Venturing encompasses the Mainport Innovation Fund and other venturing alliances, focused on
finding and growing start-ups today, whose innovations will be used in the organization tomorrow,
leading to a faster and cheaper innovation model and to earlier access to new technologies and
markets.
Due to the uncertain nature and the long-term horizon of most innovation projects, innovation
within KLM faced several challenges. In addition, KLM had a lot of valuable knowledge that may
be interesting for other parties, but finds it difficult to capitalize on these.
Mainport Innovation Fund
Focus, investment criteria and process

As the aviation industry is expected to double over the coming 20 years, innovation in the sector
is therefore crucial to ensure sustainable and safe aviation, both now and in the future. To further
push the innovation agenda, the Mainport Innovation Fund was founded in 2009. The MIF aims
to invest venture capital in promising technology start-ups with breakthrough innovations in
products, technologies, and processes that contribute to sustainability on the aviation sector. The
fund is supported by the government via the Technopartner scheme, which means that the
government doubles the investment made by the other parties. The total amount of capital
available was 8 million Euros at the beginning of 2009.
The MIF was founded by the Dutch aviation company KLM (part of AIR FRANCE KLM), together
with Delft University of Technology (TU Delft), Schiphol Airport, and Rabobank (Dutch banking
and financial services company). Although the partners are highly complementary, they each
have their own objectives to participate in the fund. TU Delft is seeking to leverage its knowledge
and expertise, but also sees the MIF as a platform for young engineers to learn about the
commercialization of technologies. KLM believes in strategic partnerships with new ventures to

accelerate innovations that will make aviation more sustainable and more innovative. Schiphol
Group values the network that the MIF has access to and views the potential deal flow as an
excellent starting point for the realization of its innovative and sustainable ambitions. Finally,
Rabobank aims to leverage the MIF to give substance to one of its core themes of corporate
social responsibilities: clean technologies and innovations.
Each of the partners has a 25% share in the fund and thus an equal vote when it comes to
making investment decisions. All partners are represented in the fund management, which is
responsible for the analysis and preparation of possible investment deals. After an investment
proposal has been prepared (including the key terms), the investment committee decides on
whether to invest or not. The investment committee consists of the CFO of Schiphol, the CFO of
KLM, the director Private Equity of Rabobank and the Chair of the Executive Board of the TU
Delft.
The investments of the MIF are primarily focused on issues that promote the sustainable
development of the aviation industry and airports, such as: (green) aviation technology, mainport
development, energy, environment, security and safety, seamless travel, mobility and
connectivity. In order to be eligible to receive an investment from the MIF, the company needs to
have at least a working prototype or proof of concept. As is common in the venture capital sector,
the MIF invests in stages based on certain milestones, in return for a substantial minority share.
The initial investment is usually small, aiming at supporting the company throughout its growth
stage by being a strategic partner. Finally, the MIF will invest no more than 1.5 million euros,
enabling the backing of companies for a considerable period of time. During this period, start-ups
must have at least reached the stage of market entry. Companies with a large short-term capital
need are outside the scope of the fund. The investment scope of MIF is depicted below (see
Exhibit 1).
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Exhibit 1: Investment scope of MIF
Moreover, the MIF has established a list of additional criteria that companies should meet in
order to be eligible to receive an investment. Companies should have a strong and ambitious
management team and a distinctive (technological) strength, evidenced by a protected
technology and a working prototype. Moreover, they need to be in the start-up phase (no older
than 5 years), with the ability to make a significant impact on sustainability, and based in the
Netherlands. Evidently, all start-ups need to fit the capabilities of the MIF, meaning that the MIF
and its partners can clearly add value to the start-up.
The starting point for an investment is the submission of a business plan, including elaboration
on the following subjects: (i) Management team and organization, (ii) product and value
proposition, (iii) market size and structure, (iv) business model and go-to-market strategy, (v)
financial forecast and investment structure, (iv) technology protection and patents. After
evaluating the business plan, the MIF will set up an initial meeting with the entrepreneur to
explore the fit with the MIF and the potential added value of its partners. Next, the partners of the
MIF will prepare an investment proposal, which needs to be approved by the investment
committee. After approval of this proposal, the transaction can take place and the start-up will
become a portfolio company. This whole process takes about 3-6 months to complete. Details of
the investment criteria and the investment process are depicted in Exhibit 2.
Exhibit 2: MIF investment criteria and process
Portfolio companies
Since the start of the MIF, the fund has invested in two startups. In March 2011, the MIF
announced that it would invest in Casper, a startup company that focuses on the development
and sales of systems for monitoring and analyzing air traffic. Casper was founded in 2010 by
Frontier, a software development company that specializes in the development of presentations,
tools, and applications to visualize large quantities of data. The ambition of Casper is to deliver
solutions that contribute to a more sustainable innovation by focusing on two main aspects: the
relationships between the airport and its surrounding communities, and the effect of airport
operations on its environment. Their main products are Casper Flight Tracking and Casper
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Noise. Casper Flight tracking is a web-based solution that presents information about aircraft
movements in the air and on the ground. Casper Flight Tracking offers the possibility to review
this information real-time in order to understand the current situation, while historic tracks allow
for the analysis of past situations. Casper Noise, on the other hand, enables airports and noise
offices to measure, monitor and report on noise and noise abatement procedures. As airports
and airlines will be more and more confronted with legal requirements regarding the
environmental impact of airport operations, Casper Noise helps to monitor and analyze the
environmental impact, and also fosters open communication with different stakeholders.
In August 2011, the MIF also announced an investment in MPS (Multi Pilot Simulations BV), a
manufacturer of a new generation of professional flight simulators for the aviation training
industry. MPS was founded in 2007, by Dick Verburg, Martijn Niekerk, and Iskander Hannivoort.
Dick Verburg was CEO and founder of European Pilot Selection and Training (EPST), and the
three had previously collaborated on the certification process of EPST’s first fixed-base Boeing
737-800 simulator. After successful certification of EPST’s simulator, the founders came with the
idea to design and develop a range of affordable airline fixed-base simulators, which resulted in
the founding of MPS. Fixed-base simulators (as opposed to full flight simulators) allow for more
and better training by lowering the costs of the training, while having flight instructors on board to
help design the devices ensures the quality of the training. Ecological- and environmental
responsibility are central elements in all parts of MPS’s business. Not only do fixed-base
simulators allow for lesser actual flights and thus less fuel, the devices themselves are also
manufactured using recycled materials and parts from decommissioned aircrafts, and the training
incorporates fuel and flight optimization techniques.
New investment opportunities

In December 2011 the MIF was confronted with two new potential investment opportunities. Both
opportunities had different value propositions, which are explained below.

ALPHA offered innovative electronic smart cards and bag tags, improving the efficiency of
check-in, security check, bag-drop, and boarding procedures. Alpha offered two main products:
the e-(boarding) pass and the electronic (permanent) bag tag. The e-(boarding) pass is a smart
card with a permanent (updatable) boarding pass that displays loyalty status, check-in status,
etc., which allows fast passing through all airport touch points, thereby improving speed and
efficiency at the airport. The e-bag tag is a permanent (updatable) bag tag, which replaces the
traditional baggage labels. This allows for faster and more convenient baggage drop procedure
thanks to faster identification and elimination of tagging (now 30% of process time).
The implementation of these products does not require fully RFID equipped airports, as it also
works on the existing barcode technology, allowing for a faster rollout. In addition, although
currently focused on the aviation industry, other industries would also benefit from these
solutions (e.g. public transport, banking, retail). “The future will see ultra thin active matrix
displays in places and devices not found today. We are starting with smart cards and permanent
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bag tags for the aviation and public transport industry,” said one of ALPHA’s co-founders.
A few potential competitors were on the horizon, including one that provided ‘blind’ tags working
on cards with displays, one that made only ‘blind’ tags, and one that made a reusable single
segmented display enabled RFID bag tag. However, none of these solutions were backwards
compatible with the current barcode system.
The venture team behind ALPHA consisted of three strong and experienced individuals where
two of them had relevant commercial and operational experience in the aviation and public
transport industry and the third person had an M&A / financial background. The amount of money
needed for the first round is about 400,000 Euros for a 25% stake.
BETA was founded in 2008 by two wind energy experts from TU Delft. BETA offered an
innovative solution for the generation of energy from wind. Power production is realized by pulling
a cable from a generator by flying a small sailplane at 400m altitude. Propelled by the wind like a
6
Press release, Mainport Innovation Fund
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kite, the aircraft unwinds a cable from a ground-based winch. The rotation of the winch drives a
generator. When there is no more cable, the aircraft flies back towards the winch. This results in
low tension in the cable, such that it can be retracted with minimal energy consumption. Due to
stronger and more consistent winds at higher altitudes, the PowerPlane realizes much higher
capacity factors compared to conventional wind turbines. Since the PowerPlane has no tower, it
has lower installation and foundation cost, especially offshore. The PowerPlane requires 20% of
the materials of a wind turbine, reducing the capital expenditures significantly. Combined with
lower environmental impact and low development cost, the PowerPlane will revolutionize the
wind industry.
As this solution operates at higher altitudes where winds are stronger, the capacity is doubled,
while capital expenditures could be lowered by replacing materials with intelligence. Given the
fact that the demand for power will grow over the next decades, BETA offered a solution that is
able to capture a significant part of the market.
Also, BETA had a top tier technical team with aerospace background and an advisory board
chaired by the former director of Shell Technology Ventures, Ecoventures, and Nuon
Renewables. The team consisted of six people, all experienced engineers with educational
backgrounds in aerospace engineering, computer science and astrophysics. Two of them were
previously involved in the development of the YES2 Satellite – an experiment by the European
Space Agency involving the deployment of a tether on a satellite in space to send a parcel back
down to Earth. According to one of the partners of the MIF: “This is a really great company, with
high technology. BETA has a state-of-the-art development team and a very capable
7
management with a huge ambition.”
Although several potential competitors were on the horizon, their concepts varied to a great
extent in the theoretical power output and technological risk. One competitor used kites for the
generation of airborne wind energy, which is characterized by a high level of technological

complexity and a low level of power output. Another one used similar technology, but with a
higher level of technological complexity or operating a higher altitude.
The proposed investment was a co-investment with the Dutch Greentech Fund (lead investor).
The amount of money that needed to be invested by the MIF in the first round is 150,000 Euros,
in return for a 7-8% stake in the venture.
Both opportunities were potentially very interesting and fell within the guidelines as set by the
MIF. The day was coming to an end and Ignaas had to come up with a final recommendation
regarding both opportunities for the CFO of KLM. How attractive were these opportunities for
KLM, but also for the other partners in the MIF?
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www.oneplanetcrowd.nl
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REFERENCES
9
KLM Royal Dutch Airlines, Annual Report 2011
IATA Vision 2050, Singapore, 12 February 2011
KLM, Combined forces, Annual Review 2008-2009

KLM Royal Dutch Airlines, Annual Report 2009-2010
KLM, A new world to share, Annual Review 2010-2011

814-038-1
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Appendix 1: KLM Facts & Figures
Revenue and income

In financial year 2010-2011 the KLM Group carried 23.1 million passengers and 491,000 tons of
freight. Income in this year was 8,651 million euros.
Employees
On 31 March 2011, the KLM Group had 33,442 employees.
Technical maintenance
KLM Engineering & Maintenance is largest aircraft manufacturer in the Netherlands, employing
around 5,000 technical staff. KLM E&M and Air France Industries (AFI) jointly carry out
maintenance, repairs and modifications on aircraft, engines, and components for the AIR
FRANCE KLM fleet and various other airlines worldwide.
Fleet composition
The KLM Group fleet comprises 211 aircraft with an average age of 11.4 years.
Destinations
With the start of the winter schedule on 30 October 2011 KLM expanded its network from
Schiphol with one European and five new intercontinental destinations. With this expansion and
certain adjustments, the number of direct routes offered by KLM (and its partners) from
Amsterdam was 77 intercontinental destinations and 80 European destinations.
Home base and global hub

Amsterdam Airport Schiphol
Financial interests
Wholly-owned (100%) KLM subsidiaries are:
 Transavia Airlines C.V.
 Martinair Holland N.V.
 KLM Cityhopper B.V (including Cityhopper UK and UK engineering)
 KLM Catering Services Schiphol B.V.
KLM also has other interests including a 26% share of Kenya Airways.
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814-038-1
8910
Appendix 2: KLM Key figures 2005-2011
Consolidated figures in millions euro 2010/11 2009/10 2008/09* 2007/08 2006/07 2005/06
*Including Martinair from January to March 2009
Key figures
Revenues 8,651 7,469 8,182 8,028 7,698 7,201
Expenses 7,462 6,973 8,023 7,277 7,095 6,661
Income from current operations 383 (285) 159 751 603 540
(as % of operating revenues) 4.4 (3.8) 1.9 9.4 7.8 7.5
Profit (loss) for the year 147 (383) (193) 291 516 276
Capital employed 4,179 4,398 4,490 4,675 4,612 4,467
Return on capital employed (%) 5.7 (7.0) 1.7 8.3 10.4 9.0
Net-debt-to-equity ratio 109 118 72 57 87 106
Traffic figures
Passenger
Traffic (in millions of revenue passenger- 76,974 74,129 76,667 75,073 72,367 69,115
kilometers, RPK)
Capacity (in millions of available seat-kilometers, 92,064 90,168 93,992 90,563 86,478 82,736
ASK)
Passenger load factor (%) 83.6 82.2 81.6 82.9 83.7 83.5
Cargo
Traffic (in millions of revenue ton freight- 6,533 6,301 5,163 4,947 4,823 4,893
kilometers, RTFK)
Capacity (in millions of available ton freight- 8,874 8,712 7,603 6,675 6,511 6,542
kilometers, ATFK)
Cargo load factor (%) 73.6 72.3 67.9 74.1 74.1 74.8
Financial position
Cash flow from operating activities 609 (259) 503 999 754 790
Cash flow from investing activities (excluding (434) (481) (493) (460) (616) (624)
(increase)/decrease in short term deposits and
commercial paper)
KLM Group staff (average number of FTEs)
Permanent 30,315 30,888 29,424 28,508 28,740 28,998
Temporary 1,401 1,689 2,424 2,497 1,781 1,120
Employed by KLM 31,716 32,577 31,838 31,005 30,521 30,118
Agency staff 1,726 1,455 2,010 1,997 2,034 1,660
Total KLM 33,442 34,032 33,848 33,002 32,555 31,778
8
KLM Royal Dutch Airlines, Annual Report 2011, 2009-2010
9
KLM, A new world to share, Annual Review 2010-2011
10
KLM, Combined forces, Annual Review 2008-2009
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Appendix 3: Aviation trends and motivation for MIF
Sustainable aviation growth and technological challenges

form the key motivation for the MIF
The expected growth in aviation requires game changing innovation to realize sustainable growth
Aviation is expected to double over the coming 20 years* and needs to THE MIF SOLUTION
address sustainability challenges with innovation
World Annual Traffic
Demand will increase: Drive innovation and co-

- Air travel grows at 5% average per operation across the value
year chain
- Growing middle class in emerging
countries Fill the financing gap
Technology impact: Adhere to sustainable

principles of investment
- New technologies enter the
aviation market: RFID, NFC,
biometrics, etc.
- Safety and security challenges
require technological innovation
Sustainability issues: ker

ban
€
- Sustainable fuels
- Waste reduction
- Climate neutral aviation/airports
* Source: IATA
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814-038-1

CASE DEVELOPMENT CENTRE

Corporate Venturing at AIR FRANCE KLM

Corporate Social Responsibility

The Airline Industry

Innovation and Venturing at KLM

Focus, investment criteria and process

commercialization of technologies. KLM believes in strategic partnerships with new ventures to

Exhibit 1: Investment scope of MIF

Exhibit 2: MIF investment criteria and process

New investment opportunities

opportunities had different value propositions, which are explained below.

generation of airborne wind energy, which is characterized by a high level of technological

KLM, Combined forces, Annual Review 2008-2009

KLM, A new world to share, Annual Review 2010-2011

Appendix 1: KLM Facts & Figures

Revenue and income

Home base and global hub

Appendix 3: Aviation trends and motivation for MIF

Sustainable aviation growth and technological challenges

Demand will increase: Drive innovation and co-

Technology impact: Adhere to sustainable

Sustainability issues: ker

- Climate neutral aviation/airports

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