How do you feel following the official launch of the partnership between La Compagnie and easyJet Worldwide ?
Jean-Charles Périno - We are obviously delighted that La Compagnie's offer is being distributed via easyJet's Worldwide site: it opens the door to a whole host of new opportunities. several hundred million visitors unique all year round. This reflects changes in distribution and the emergence of a new category of travellers, who organise their own connections. And there are more and more of them.
So the marriage between low-cost and 100% business is complete...
J.-C. P. - That's the reality of today's market. The consumer has become a playerThey know what's on offer, and make their choice based on the type of service they want. This makes sense in terms of experience and cost.
Is La Compagnie moving from a point-to-point strategy to a hub policy?
J.-C. P. - We are very clearly positioned on a point-to-point model, and we are not moving towards a hub approach. On the other hand, we are listening to the market. And today we are, 8% of our customers are not in Paris or New York. They come from the provinces, Switzerland and Belgium to Paris to catch their flight to New York. So it's up to us to facilitate this experience without falling back on the connection complexities of traditional airlines. This model meets demand. This agreement with easyJet is a first step, an extraordinary step in terms of visibility.
The digitalisation of distribution has had a profound effect on the market
Is this a turning point in the history of the airline industry?
J.-C. P. - I don't know if we can talk about a turning point, but there has been an evolution over the last few years. The digitalisation of distribution has had a profound effect on the market. This has gone hand in hand with a better understanding of the offer by customers, who are now looking for solutions that are not yet fully integrated. But we are taking the gamble of moving in this direction, without falling into the logic of connections like traditional companies, with many hidden costs. Instead, we are opting for the efficiency of low-cost carriers.
Will you be reorganising flight schedules to interface with easyJet?
J.-C. P. - No, these are two specific offers. Today, it concerns a distribution contract which allows you to book a La Compagnie transatlantic flight via the easyJet website. There is easyJet on one side and La Compagnie on the other, and there is no programme adjustment between the two carriers.
However, easyJet has already developed partnerships with other airlines that go beyond distribution...
J.-C. P. - Gatwick airport has developed Gatwick Connect, which facilitates connections between easyJet and its partners with whom the airline does not have a codeshare agreement. The aim is to facilitate baggage handling, for example. In this case, the customer makes just one transaction for two transport contracts.
Could we find this kind of approach in Paris?
J.-C. P. - We are very attentive to what Aéroports de Paris can develop in this area. It's a subject that will evolve, depending on everyone's priorities.
Have you already put a figure on the increase in traffic that could result from this agreement?
J.-C. P. - Today, it is still a little early to talk about figures. The partnership will be implemented over the coming weeks and months. Let's talk about it again with a bit more hindsight in six to nine months' time, when we'll have a clearer picture. What is certain is that this is a tremendous development opportunity for the Company, and a simplification of the passenger experience.
The other news concerns the fleet of La Compagnie...
J.-C. P. - Yes, we have made official the purchase of new generation aircraft from 2019: two A321 Neo aircraft. In addition to the news for our customers, which shows that there will be even more innovation, this also reflects the market's appetite for this very specific model, which is the only one of its kind in the world. niche market for the best value in business class. It's a product that attracts not only businesses, but also a number of leisure travellers. The arrival of the 321 Neo, after the closer ties with XL last December, shows that there are a genuine development plan to ensure the Company's long-term futureand sends an extremely positive message to our customers.
What are you going to do with these new devices?
J.-C. P. - We are going to position them on the Paris-New York route, to replace the Boeing 757s. This may enable us to developing the charter businessThis segment is becoming increasingly popular, and now accounts for more than 5% of sales. There aren't many 100% business class aircraft on the market...
How do you plan to market the Wi-Fi access that will be installed on your new aircraft?
J.-C. P. - A plane without Internet access is a refuge! In the end, we decided to go for wi-fi: the aircraft will be 100% connected because it's a service that consumers expect. But we don't yet know how this offer will be marketed. The business model for wi-fi has changed over the last four or five years. We are looking at it, evaluating it, and we will decide in the coming months on the model we will adopt.
So you're not planning to set off to any new destinations?
J.-C. P. - A few options are being studied, but our teams are small, so we prefer to sequence the issues and go step by step. The A321 project has been the focus of our attention recently. Why not carry out tests on new destinations, using seasonal flights? We haven't made up our mind yet.
How are load factors evolving since the addition of a new frequency between CDG and New York?
J.-C. P. - The doubling of frequency was a formidable accelerator. We have increased our capacity by an average of 50%, and the increase in the number of passengers has exceeded 50%. The acceleration particularly concerned our core target: business travellers. These passengers need frequency, and it reassures them to be able to count on a second option. The merger with XL has also enabled us to focus on our performance through economies of scale. So we are now in a position to commit to a fairly long time horizon.
What is the balance between business and leisure customers, between US and European passengers?
J.-C. P. - We can consider that business passengers make up two thirds of our customer base, and 55% of our customers are based in the United States.
Has the rapprochement with XL been a smooth one?
J.-C. P. - It was all the more natural as we were in no way competitors, our market targets being very different: on the one hand the leading long-haul low-cost airline, on the other a 100% business class product. So we're delighted to be joining forces.
Our performance has improved, but we still have a long way to go
Are you planning any new services or offerings?
J.-C. P. - This year we have already launched the Unlimited offer, which allows you to fly as much as you like with the Company. We launched this offer "blind". We're doing it again because 100% of our customers have renewed their subscription, and because it sends out a strong message about the changing way we consume. We have also strengthened our gastronomic offering.
Isn't there a traffic jam on the transatlantic axis?
J.-C. P. - We're in a highly atypical market, a route where more than two million passengers converge, and a premium market that represents nearly 500,000 people in the broadest sense. We have room for improvement. Our performance has improved, but we still have some way to go.
With the development of long-haul low-cost carriers, we could expect a levelling down of the offer. Wouldn't this undermine the potential of the 100% business model?
J.-C. P. - I don't have the impression that low-costs have dragged the product down. It's a different product, very 'appetising' for the consumer. We are in the business segment at the best price. We don't have any QSuitejust a super-efficient product in business class.
