This document summarizes the proceedings of a plenary session of the France Tourism Development Agency. It includes welcoming remarks and introductions from Jean-Philippe Perol, the Director Americas of Atout France. It then provides an overview of Atout France's strategic plans, key priorities in the US market, and the various products and services it offers like FranceGuide. It also recognizes award winners from the previous year. Simon Spinks from Air France-KLM then presents on the airline's financial results and strategies for thriving in the new competitive environment. The document concludes with questions and answers from various panel discussions on topics like e-marketing, publications, destination France, and trade events.

1. WELCOME
PLENARY SESSION

2. JEAN–PHILIPPE PEROL
Director Americas
ATOUT FRANCE

3. WELCOME TO
SAN FRANCISCO

6. • 78 Suppliers
• 103 Tour Operators
• 13 ATOUT France Staff
• 20 Industry Related Guest, including NTO from
Participants

7. FRANCE TOURISM DEVELOPMENT AGENCY

8. Strategic plan worldwide
• Developing high-value segments
• Generating loyalty from strategic clients
• Attracting the ‘global village’ members

9. Key priorities for the US market
• Renew our image to attract the X
generation and the ‘global village’
members
• Help the great French cities to become
actual destinations for the American
travelers
• Support the TO in developing products

10. Products with high added value

11. Diverse target segments

13. Lyon
Marseille
Bordeaux
Nice

14. Languedoc-Roussillon
Rhône Alpes
Alsace
Normandie

15. Martinique
Tahiti
Guadeloupe
Saint-Martin

16. Hotel Classification Program

17. Franceguide.com

18. Enewsletters and vlogs

19. Jeunes Talents

20. Franceguide Page on Facebook

21. CRM Program

22. Traveler origins

23. Platform of Digital Info-Mediation

25. FRANCE TOURISM DEVELOPMENT AGENCY

26. Pompidou-Metz

27. Musee d’Orsay

28. Louvre

31. Strasbourg Tramway

32. French Affairs Awards 2010
• Best Website
• Best Special Interest Offer
• Most Diverse and Extensive Offer
• Best Overseas Offer
• Most Creative Tour Operator on Social Media Network
• Most Active Partner
• Tour Operator of the year (Professionals)
• Tour Operator of the year (Consumers)

36. Is now open!

37. FRANCE TOURISM DEVELOPMENT AGENCY

38. SIMON SPINKS
Vice President Commercial
AIR FRANCE – KLM USA

39. Air France and KLM
Thriving in the New Reality
Simon Spinks
VP Commercial USA - Air France KLM
Oct. 24, 2010

40. Travel is Rebounding

41. Premium Travel Improving…
But Continues to be a Key Challenge
40
60
80
100
120
140
160
180
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Total TATL Revenue Premium TATL Revenue
April 2008 = index 100
AF Transatlantic revenue for US point of sale

42. The Changing Competitive Environment
STAR alliance Low cost
carriers
Middle East
carriers
LCC
long haul
VideoconferencingHigh speed trains

43. Airline Financial Positions by Region
Source: Bloomberg

44. Air France KLM Group Financial Results
(in millions
of euros)
2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010
Revenues 19,417 21,448 23,073 24,114 23,970 20,990
Net Income 706 913 891 987 -814 -868

45. AF KL Performance in the U.S. in 2010:
Exceeding Expectations
2 yrs ago PY Forecast Results
KL
AF
2009

46. +
+
= SUCCESS
Our Strategy for Thriving – Not just
Surviving

47. Continuing to Leverage the Air France brand-
“Making the Sky the Best Place on Earth”

48. Re-launching the KLM Brand in the U.S.-
Refreshingly Genuine”

49. Investing in and Adapting the Product
Portfolio
World Business Class

50. Air France Affaires:
The New Long Haul Business Seat

51. Responding to a Changing Society:
Remaining Relevant and Up-to-Date
1.600.000.000

52. Using New Media for New Touch Points
On board connectivity/
entertainment
Social Media
Contextualized
kiosk
Mobile
Personal Travel Assistant

53. AF KL’s Continued Dedication to Industry
Leadership in CSR
First bio-fuel flight
carrying passengers
November 2009
First Transatlantic
”green” flight
April 2010
2004-2010: #1 in the
Airline Sector

54. Leveraging and Expanding the Joint Venture
Air France KLM Delta + Alitalia

55. Asia-Pacific
#1
North America
#1
Latin America
#1
Africa
#1
Europe
Mid East
#1
Global Leadership Position with the
Joint Venture

56. Growth of Air France and KLM presence
in the U.S. & Canada via the Joint Venture
13 gateways/216 AF & KL-operated flights per week from the U.S.

57. The Joint Venture’s Network Strength
AF+KLM+Delta+Alitalia
•250 flights p/day
•65,000 seats p/day
•25 N.American nonstop destinations (of which 16 served
out of more than 1 European hub)
•31 European nonstop destinations (of which 17 served
out of more than 1 Delta hub)
•32 daily Hub-to-Hub flights, connecting 265 N. American
destinations, 135 European destinations

58. The Joint Venture’s Positive Results :
1Year Later
Index

59. Others
21%
DL
19%
AF
4%
KL
3%
AA
9%
BA
9%
UA
12%
LH
10%
CO
6%
US
7%
The Joint Venture’s Market Share :
US to Europe
May – Jul 2010
Point of Sale:U.S.
JV 26.6 %

60. The Joint Venture’s Flight Frequencies :
Winter 2010 vs. Winter 2009

61. Latest Route/Service Developments
•New Joint Venture Routes
-Air France
 Orlando-Paris
 Lima-Paris
 A380 Montreal/Paris
-Delta
 London Expansion
 JFK-Reykjavik
•Other : Africa (New Non JV + Increased Service)
 Delta : Atlanta-Luanda
 Air France : Freetown, Monrovia, Tripoli and Bata
 KLM : Kigali to Amsterdam

62. Tour Operation – year over year market share
growth within the joint venture
POS USA to EUR Oct 09-Aug 10
118
93
113
AF+KL+DL+AZ UA+LH+CO AA+BA+IB
Index

63. Tour Operators market share weight by airline
grouping
POS USA to EUR Oct 09-Aug 10
AF+KL+DL+AZ
33%
UA+LH+CO
28%
AA+BA+IB
25%
Others
14%

64. Tour Operator revenue within JV Specialty Sales
47%
7%
9%
9%
28%
others
Cruise
Nikkei
Consolidators
Tour
Operators
$ 1.2 Billion
JV = AF KL DL AZ

65. Tour Operatorion – Industry top market share by
destination US to Europe
POS USA to EUR OCT09-AUG10
19%
15%
13%
9%
7%
6%
5% 4%
3% 3%
16%
Italy
UK
France
G
erm
any
Spain
Ireland
G
reece
Holland
Hungary
Israel
O
thers
Countries
Weight%

66. SkyTeam:A Powerful Airline Alliance of
13 Partners, 898 Destinations in 169 Countries,
395 million Passengers, 13,000 Departures Daily
66

67. Organizational Changes – taking care
of business
Christine Ourmieres VP & GM AFKL USA (NYC) > CEO CityJet
Christian Herzog SVP Americas (PAR) > VP Marketing AFKL (PAR)
Patrick Roux VP Marketing AFKL (PAR) > SVP Americas & GM AFKL USA (NYC)

68. Organizational Changes – ensuring
continuity of Air France KLM in USA
• Maturing and flourishing partnership with Delta in North America
• Optimizise the AFKL position within the transatlantic joint
venture
• Offer strong localized support to our key business partners
Achieve AFKL revenue and performance indicators and strategic
priorities
• Pursue and safeguard AFKL development and integrity in this
key market
• Leverage AFKL assets while anticipating customers'
expectations by offering them the best products and services

69. +
+
= SUCCESS
Our Strategy for Thriving – Not just
Surviving

70. Thank you.

71. FRANCE TOURISM DEVELOPMENT AGENCY

72. QUESTIONS
&
ANSWERS

73. FRANCE TOURISM DEVELOPMENT AGENCY

74. DAVID DOTY
Moderator
PANELS DISCUSSION

75. PANEL DISCUSSION
E-MARKETING

76. KELSEY TOMASCHESKI
Marketing Manager
Europe Express
GREGG MARSTON
President
VTB Bicycling Vacations
JEAN-CHARLES PERINO
Commercial Director
Openskies
MAILO ARSAC
Project Manager
ATOUT FRANCE

77. QUESTIONS & ANSWERS

78. E-MARKETING
CONCLUSION

79. FRANCE TOURISM DEVELOPMENT AGENCY

80. PANEL DISCUSSION
FRANCEGUIDE & PUBLICATIONS

81. GUY GESLIN
Director
Renault USA
MICHELLE DUFFY
Sales Manager
Duvine Adventures
ANNE-FRANCE STEVENSON
President
A-France Hotels
MARIE BACHELIN
Promotion Manager
Normandy Tourist Board
MARGUERITE RICHARDS
Publications Manager
ATOUT FRANCE

82. QUESTIONS & ANSWERS

83. FRANCEGUIDE & PUBLICATIONS
CONCLUSION

84. FRANCE TOURISM DEVELOPMENT AGENCY

85. PANEL DISCUSSION
DESTINATION FRANCE

86. CINNAMON BROCEAUX
Co-Owner
Five Senses Culinary
CHIPS LINDENMEYR
President
Lindenmeyr Travel
HARRY DALGAARD
President
Avanti Destination
DANIEL ARNOUX
General Manager
Des Hotels et des Iles
CORINNE FOULQUIER
Deputy Director
ATOUT FRANCE

87. QUESTIONS & ANSWERS

88. DESTINATION FRANCE
CONCLUSION

89. FRANCE TOURISM DEVELOPMENT AGENCY

90. PANEL DISCUSSION
TRADE EVENTS

91. CELIA COENE
Owner
Berra Terra Travel
DOMINIQUE KLEPANDY/ KATIA LARIVIERE
Director/Promotion Manager
Languedoc Roussillon Tourist Board
JANET IRWIN
President
France Encore
JOSE BARREIRO
Advertising Director
Questex
NATHALIE POTO
Leisure Marketing Manager
ATOUT FRANCE

92. QUESTIONS & ANSWERS

93. TRADE EVENTS
CONCLUSION

94. FRANCE TOURISM DEVELOPMENT AGENCY

95. PLENARY SESSION
WRAP UP

96. 220 actions for a comprehensive
and innovative Marketing Plan
40 campaigns, 9,6 M impressions, 900 000 names added to the CRM,
15 000 requests and brochure downloads, 7 M visitors to the site ,
10,8 M e-news readers, 300 000 Franceguide and 40 000 Franceguide Prestige
distributed, 35000 webzine downloads, French Cocktail Hour, Jeunes Talents in
NYC, LAX and MSY, 200 M email blasts, 15 video blogs Lost in Francelation,
300 000 Professional e-news subscribers , 4 Webinar sessions, Easy Reference
Guide, 1500 certified agents, French Affairs, Red-White-Blue, 6 France events,
on-line surveys, 6 market analysis and forecast newsletters, wine tourism,
cruises and culture campaigns, Luxury travel expo, e-news for youth travel, gay
traveler, Hispanic campaign and seminars, France presence at Cruise Shipping
Miami, 4 French Tuesdays.

97. Supports to the Travel Trade

98. THANK YOU
FOR YOUR ATTENTION