Having just been appointed by the Board of Directors ofAir Franceand with the open support of the French government - Air France's main shareholder - the new Chief Executive Officer of Air France, Benjamin Smithis already causing controversy. He will officially take office on September 30th However, the arrival of Benjamin Smith is causing a stir among trade unions, who are denouncing the appointment of a foreign executive. Without getting into the controversy surrounding the nationality of the new CEO, what does Benjamin Smith's arrival mean for the company? Air France KLM Group strategy ? And what can passengers expect?
Benjamin Smith is a recognised professional, having worked miracles during his time at the helm ofAir Canada. The Canadian airline is profitable, and its in-flight passenger services are of the highest quality, making it the benchmark for service quality throughout North America. The creation of a long-haul low-cost subsidiary has given Air Canada a international dimension that it no longer had. In France, for example, it's Air Canada Rouge which offers regular Montréal to Marseille and Niceincluding a Premium Economy for business travellers.
In France, his appointment has already calmed the shareholders and the KLM part of the group. A non-Frenchman, who does not come from the classic ENA-HEC-Senior State Civil Servant background, is rather a reassuring signal. It also helps to rebalance the strained relationship between Air France and KLM. The Canadian will bring a necessary neutrality. Benjamin Smith's nationality should also satisfy Delta Air Lines, one of Air France's shareholders. Even if it is not "made in the USA", a North American culture is judged positively, particularly when it comes to major strategic decisions concerning the transatlantic joint venture between Air France-KLM and Delta.
revitalising Air France
According to a press release from the Air France-KLM group, " Benjamin Smith's top priority will be to revitalise Air France, give the deep strategic impetus to the Group, and to work with the teams on a new managerial approach." stresses the group.
Air France will undoubtedly be showing more dynamism in its fight against fiercer competition. We can expect new pricing strategiesBen Smith is no doubt inspired by his success at Air Canada. This probably augurs well for the creation of a genuine low-cost hub as its European competitors IAG have done with Vueling-Level and Lufthansa with Eurowings. One of the main thrusts of the overhaul will certainly be the redefining the role of JOON - hybrid and poorly positioned product - and TransaviaThis is a short-haul low-cost airline, but its European presence remains relatively weak compared with the competition. Eventually, a low-cost subsidiary along the lines of "Air Canada Rouge" is likely.
Le Charles de Gaulle hub is also set to become more efficient with a complete overhaul of the connections offered. The hub is considered one of the best in the world for the number of connections it offers. But it could become even more powerful with the launch of new air routes. The absence of certain routes in Asia (Indonesia, the Philippines, secondary cities in Japan, among others), Central America and secondary European destinations could be made up for by better synergies between the traditional airline division (Air France and KLM) and a future low-cost division.
Finally, in terms of the service itself, Air France today ranks among the very good airlines. What is perhaps missing is a more developed à la carte offer. For example, only Premium Economy passengers can buy a access to the exhibition at the time of departure. Why not extend it to everyone, or create new lounges for passengers paying for this service? More cabin options - apart from meals - could also be offered...
Be that as it may, the arrival of Benjamin Smith should bring a more international vision to Air France, with better consideration of the competitive challenges facing the airline. All that remains now is to convince the unions...
