Air France-KLM Culture Clash

By Priyanka Yadav

Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and maintain. Strategic alliances projects often fail because of tactical errors made by management.

The 13-year-old alliance between national carriers KLM and Air France is fraught with difficulty and some officials have doubts about whether it can continue, broadcaster NOS said, quoting a company document.

French staff in the Franco-Dutch company complain their colleagues from the Netherlands are money-grubbing, while the Dutch regard the Air France staff as aloof, according to the report. “The French have the impression that the Dutch think only of money and are always ready to fight for profit. They are not afraid of anything,” the researchers reported. “The Dutch think that the French are attached to a hierarchy and political interests which are not necessarily the same as the interests of the company … The extent to which employees are disillusioned is shocking. People are pessimistic, frustrated and burnt out because they feel that this is not listened to.”

A leaked internal report says the national cultural differences between the airline group's Dutch and French staff is so acute that it is uncertain 'whether the alliance can survive given the long-standing mutual incomprehension'.

“One questions whether the alliance can survive given the long-standing mutual incomprehension between the Dutch and French camps within the group,” one researcher was quoted as writing.

Air France-KLM said: “The conclusion of this study identifies cultural differences and different visions leading sometimes to difficulties but also a common interest and the desire to find solutions in the interest of Air France-KLM group and each airline.

It is clear that as a business grows, it may develop a diverse group of employees. While diversity often enriches the workplace, it can bring a host of complications as well. Various cultural differences can interfere with productivity or cause conflict among employees. Stereotypes and ignorance about different traditions and mannerisms can lead to disruptions and the inability of certain workers to work effectively as a team.

By using a well managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits.