What are Air France's next major projects?
Frédéric Gagey - The roadmap is clear: finalise the pilots part of the Transform 2015 plan and negotiate, then roll out Perform 2020 for all categories of staff. In addition to working on costs and efficiency gains, the Group has identified three major growth levers: long-haul, in particular by strengthening our partnerships in Asia and restoring our competitiveness; the leisure market in Europe, where we need to develop Transavia; and the maintenance market.
What do you expect from the Perform 2020 plan?
F. G. - This plan, which will run from 2015 to 2020, aims to finance our growth. It is the choice of reform to combat decline. Without going into detail, I can tell you that by 2017 long-haul will have to be profitable on 80 % of its routes, and that by then our products will have continued to evolve towards excellence. Medium-haul should break even during the summer months and not lose more during the rest of the year than it contributes to long-haul. For its part, HOP! Air France aims to be the preferred link for French people travelling from one region to another or from one region to Europe. Finally, Transavia France aims to become a key European low-cost player.
How is the regional service developing?
F. G. - We have negotiated with our pilots and cabin crew based in Marseille, Nice and Toulouse to maintain these provincial bases in a tighter network. Our commercial approach is evolving with the HOP! Air France offer and very attractive call rates, flexibility for our business customers and subscribers... In a very competitive domestic market, where we have a market share of almost 80 % on the Orly-Province routes, we will maintain our footprint in all regions, serving both businesses and individuals. With our hubs in Paris and Amsterdam, we will strengthen the links between the French provinces and the rest of the world.
What new features are planned for business customers?
F. G. - Our business customers are demanding, more attentive than in the past to the quality of service/price ratio. Our move upmarket is a priority for them. In Bordeaux, we've just opened a modern salon with a range of services that reflects our vision of French-style travel and our regional roots. Our customers are raving about it. Air France has also bet on innovation, by developing services - AF Connect for example - which benefit all those who want flexibility and efficiency. Our range of fares gives access to flexible and competitive fares, and our season ticket remains a safe bet with a price that has been revised downwards. We are now able to offer companies a comprehensive package (Air France, KLM, Delta, Alitalia, HOP!), a single contract and a single point of contact. Air France is thinking of companies of all sizes and I would like to highlight the great success of BlueBiz, which enables SMEs to optimise their travel budget.
Is your business product finally competing with Asian and Gulf carriers?
F. G. - We are continuing to roll out our new La Première, Business, Premium Economy and Economy cabins on our long-haul network, on board our Boeing B777-200 and Boeing 777-300 aircraft. Seventeen destinations are already served by Air France's new BEST cabins. This move upmarket has been recognised and rewarded. On 16 June, Air France was honoured by Skytrax with two awards: the most improved airline in the world and the best catering in a first-class lounge worldwide. That's nearly 20 million customers expressing themselves through a survey like this. So my answer is yes, we are competing with the best, our customers say so.
Key dates
Born in 1956 in Vesoul. Graduate of École polytechnique and ENSAE.
He began his career as an administrator at INSEE, before joining the Ministry of the Economy in 1987.
1995
He joined Air France, where he held a number of executive positions, ranging from management control and audit to financial and administrative affairs, from privatisation and financial communications to fleet and purchasing management, as well as general management, in charge of financial affairs for the Air France-KLM group.
2012
Appointed Chief Financial Officer.
2013
Becomes CEO of Air France, replacing Alexandre de Juniac, who becomes CEO of the Air France-KLM group.
