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Air France Cargo

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  1. 1. Kinship Circle | Letter Campaigns
    www.kinshipcircle.org/letter_l - [Cached]

    Published on: 6/16/2008   Last Visited: 6/16/2008

    MARC BOUDIER, Executive Vice President - Air France Cargo
  2. 2. www.payloadasia.com
    www.payloadasia.com/pastnews-2 - [Cached]

    Published on: 1/1/2007   Last Visited: 5/24/2008

    Air France Cargo chief executive Marc Boudier said the airlines have decided to move to the 'second phase' of the project they have been discussing since June, according to a Thomson Financial report.The two airlines plan to launch a new Chinese cargo company in 2008, in which Air France-KLM will hold a 49 per cent stake and which is expected to take over the cargo activities of China Southern.

    Boudier said the company would aim for sales of nearly Euro 1 billion in the medium term, as Air France-KLM currently generates sales of around Euro 3 billion from its cargo business.

    The new company will begin operating with existing China Southern B747-400s as well as passenger aircraft belly hold capacity.Six Boeing 777 cargo aircraft ordered last year by China Southern will also be used by the new company.

    "China is now at the heart of cargo activity,' Boudier said according to the report.
  3. 3. www.payloadasia.com
    www.payloadasia.com/Magazine/a - [Cached]

    Published on: 4/21/2006   Last Visited: 3/10/2007

    Marc Boudier
    ...
    One SkyTeam cargo manager that is prepared to answer some of these questions is Marc Boudier, executive vice president of Air France Cargo.He insists that the alliance HAS had value, though says it is hard to put exact cash terms on it.

    "It is always difficult to compute synergies exactly," he admits."But over the past five years there have been at least two years when we would have had red ink on the bottom line without SkyTeam."

    So where has Air France seen benefits?One, Boudier says, is in procurement."If you can approach a handler and with 20,000 tonnes rather than 10,000 tonnes, then that gives you a better price.We know what our price was before and what it was after, and at the least there are several million dollars of gain."Joint procurement also extends to pallets and ULDs."There is also some possibilty to coordinate that market by market," Boudier says.

    He also insists that the common product line has been beneficial.Since this has essentially involved the adoption of Air France's product names by all its alliance partners, this is perhaps not surprising.But Boudier says the extra publicity for the products has helped."Because the product is shared over seven carriers, it is better known," he says.

    This could well be a factor behind the growth of specialist products at Air France, he speculates.

    "For example, Cohesion was three percent of our turnover before SkyTeam and it is now 10 percent, and Equation was four percent and is now 13 percent.Perhaps if it had not been for the alliance, growth would have been less."

    Boudier also insists that the traffic has not been one way.He cites Equation Heavy, an express product for larger items, that was put on the table by Korean Air and adopted by other carriers.

    "They showed us that express is not just about small shipments," he says."We would not have launched this without their input, or perhaps we might have had the idea, but not until several years later."

    Another example is Variation Pharma, which was proposed by KLM."Now it is a common asset, and we are promoting it together," Boudier says.

    Interestingly enough, it is the common product names that Boudier reckons is the one compulsory element of SkyTeam Cargo: the rest, he insists, is "a toolkit that any member can use if it wants to".Air France, he admits, "has used the toolkit much more than any of the others, and it has given us more synergies than those who only did the product portfolio."
    ...
    One problem that Boudier admits to is antitrust immunity.Northwest, which joined SkyTeam Cargo in September, recently failed in its attempt to extend its antitrust immunity with KLM to Air France, and that, says Boudier, means it cannot for the moment join the US sales joint venture.

    "We could try filing a business rule letter, which is what we did originally with Delta, but for the moment, we are limited in what we can do," he says.He is relatively phlegmatic about the problem.
    ...
    Boudier too admits that this prevents SkyTeam members effectively making use of each other's network.

    "Rates for Dimension (SkyTeam's general cargo product) are very low, and if you split revenues it complicates issues and quickly becomes a nonsense.We are doing some bilaterals, such as between Paris and Seoul, but this kind of thing is easier with KLM than with SkyTeam Cargo," he admits.

    One exception is Equation, the SkyTeam express product, which commands high yields and so is generally welcome on partner's networks.Otherwise, as Boudier points out, Air France KLM or Korean Air both have the networks to reach almost anywhere in the world anyway, without the need for interlining.

    The impression then, is that alliances can deliver some benefits, but that they are fairly minimal.Boudier says things like the common products and the US sales joint venture deliver revenue benefits, but most of the other members seem to want to focus on a few areas of cost savings, and perhaps the chance to get together now and again and share ideas.
    ...
    Start talking to either Marc Boudier or his KLM counterpart Michael Wisbrun, chairman of the joint cargo committee of Air France KLM, about cargo synergies between those two carriers, and the floodgates also open.

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