The move extends to the local offices, the airlines' merger formalised in 2005. The two companies' reservations, ticketing, sales, marketing and administration departments were merged in Bangkok April 1.

The united enterprise will be led by Francis Richard, general manager of Air France and KLM for Thailand, Vietnam, Cambodia, Laos and Burma.

Francis Richard, Air France KLM general manager for Thailand, Vietnam, Cambodia, Laos & Myanmar, said, in Thailand, both Air France and KLM would integrate their teams, tools and working methods step by step.

They will introduce new flight schedules that suit the Thai market. "Since April 1 this year, we have united in terms of a joint management, co-location in Bangkok, a joint city ticket office, teamwork, methods and tools harmonisation," said Richard.

Air France now offers daily flights between Paris and Bangkok, Bangkok and Vietnam, while KLM Royal Dutch offers daily flights between Amsterdam and Bangkok, and Bangkok and Taipei.

On November 1, Air France will increase its capacity by more than 60 per cent thanks to its purchase of new Boeing 747 aircraft. The airline will make the most of its association with KLM to fine-tune its commercial approach and corporate accounts and to strengthen the status of the two airlines in Thailand and in the Mekong region

Patrick Alexandre, executive vice-president of Air France's international commercial division, said the industry was having a tough time dealing with spiralling costs and increased competition from low-cost carriers.

"The objective today is to respond better to new customer expectations and to enhance the efficiency of our organisation for profitable growth," said Alexandre.

Alexandre said that one year from now, the company would have individual managers supervising all of the airline's major markets.

"We expect to save up to ¤60 million (Bt2.9 billion) in one year through the integration of all international divisions of the two airlines," he said.

He added there were now 24 co-run offices all over the Asia-Pacific region. Management integration is being phased in and will be completed in 2007.

Additionally, 90 per cent of the airline's bookings will be made electronically next year, enabling customers to print their boarding cards at home, Alexandre said.

Kwanchai Rungfapaisarn

The Nation