The Strategist

Air France-KLM to Grow Low-Cost Carrier Businesses


08/21/2015 - 18:41



The French airline Air France-KLM intends to expand its low cost carriers business to improve the competitive position in the field of cheap flights in Europe, the head of Transavia, a branch of the company, Matthijs ten Brink, says in an interview with The Wall Street Journal.



Patrick DeLang / Flickr
Patrick DeLang / Flickr
In order to expand the budget division in Europe, Air France-KLM intends to invest in the purchase of 20 aircraft. The announcement may be made in the coming weeks.

The company wants to quickly move forward with the expansion in the low-price segment, opening up operational bases outside of France and the Netherlands. It currently has two branches of the budget transport, Transavia France and Transavia Netherlands. Before, it also planned to launch a brand Transavia Europe, but the idea was abandoned because of the strike of pilots, which cost the company 425 million euros.

-    Now we have an additional year to correct the situation, there is no need to create a new airline. We were not ready to take part in the competition in Europe" - said ten Brink to the newspaper.

Meanwhile, Transavia Netherlands in July agreed on new labor agreements with its pilots that will reduce costs, as well as streamline and simplify the common Transavia brand.

In 2004, Air France has teamed up with airline KLM. The headquarters of the combined company is based in Paris. Air France-KLM flies to 124 destinations of 254 countries, the company transported more than 87 million passengers in 2014.

source: wsj.com




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