With the launch of the Paris-Seattle route, are you already thinking of a daily flight on this route?
Pierre-Olivier Bandet - We offer 5 weekly flights at peak times, provided in Boeing 777-200 equipped with the latest long-haul cabins. But in fact, the aim is to achieve a daily frequencyAt least during the summer, as it's a fairly seasonal destination.
Why did you stop this link in 2012?
P.-O. B. - The route had good load factors, but profitability was not at the expected level. Air France was going through a difficult period, and we had to cut back on a number of destinations. Delta was in a better situation and had therefore taken over the line, which enabled us to maintain a commercial presence in Seattle. Since then, the environment has changed, Seattle has developed and many major American companies have set up there. Delta has also developed a hub structureIn addition to the Pacific, Air France also serves the West Coast of the United States, enabling us to benefit from connecting traffic. At the same time, Air France has reduced its costs. We therefore believe that the time is right to take over this route, by offering a complementary timetable to the Delta flight.
What kind of clientele are you expecting on board your aircraft on this route?
P.-O. B. - Both leisure and business travellers. We're expecting more American customers travelling to Paris and Europe, with a connection from our airport. Paris-CDG hub. According to Delta's current figures, 65% of customers on this route are customers from the United States. The centre of gravity of the customer base is therefore tilting more towards the United States at the moment.
So the US market still offers opportunities for growth?
Pierre-Olivier Bandet - The US market may be mature, but it is still a development market. We can count on the strengthening our joint venture with Deltaand the arrival of Virgin Atlantic in this alliance. We will therefore continue to grow in the United States, by increasing frequencies to existing destinations or adding new routes.
The other news concerns the opening of the Paris-Nairobi flight...
P.-O. B. - We integrate joint venture with KLM and Kenya Airwaysa long-standing partner. We offer this flight in addition to the one insured by daily by Kenya Airways from Paris. The inaugural flight took place on 25 March. The schedules of Air France and Kenya Airways flights complement each other perfectly. We leave in the evening and return during the day. This is a destination more geared towards the premium leisure segmentIn addition, Kenya Airways offers flights to other destinations in West Africa. Historically, Air France has had a strong presence in West Africa, while KLM is more present in the east of the continent. Here too, in Nairobi, our aim is to gradually switch to daily frequency.
We are committed to growth
More generally, how would you describe the development of Air France's flight schedule?
P.-O. B. - The latest news in the programme is the strong growth in long-haul capacity this summer (+4%). We open five destinations from Paris - Charles de GaulleWe've only operated during the winter months up to now, and we're now extending this to the summer months, as we've already done with Cancun and Cape Town. So we're in a growth logic. On the medium-haul We have also announced a number of new routes and increased frequencies. This growth is mainly based on better use of our equipment. We don't have more aircraft than last year, we're just flying them more.
What about the Asian market?
P.-O. B. - This is obviously a high-growth area for air transport. Air France is facing Increased competition in South-East Asiaparticularly from Gulf companies. But we're not standing still, and this summer we're launching a new route between Paris and Taipeia destination historically served by KLM. This route opening is part of a tactical partnership with China Airlinesa partner in SkyTeamwhich wanted to position itself on the road. This is a joint marketing venture, with a seatbox system, not a joint venture.
Are you still looking for partnerships in this Asian market?
Pierre-Olivier Bandet - Yes, but there are also many levers in the development of our existing partnerships. Le merger with Jet Airways is starting to take shape, we are also working with two Chinese companies, China Eastern which has become a major partner since taking a stake in Air France - KLM last year, and China Southern. We may have to look for new partnerships, but we already have a good set of partnerships and alliances on which we can build.
test a certain number of destinations, and know when to stop if it doesn't work, don't have too much ego
What has changed in programme and fleet management in recent years, particularly with the Trust Together plan?
P.-O. B. - Something that had begun upstream but was amplified as part of the "Trust Togetheris the idea ofbe more agile in deploying our capacities. It's a question of testing a certain number of destinations, and knowing when to stop if it doesn't work, and not having too much ego. This is all the more true for short- and medium-haul networks, which sell out relatively quickly. Sales periods are relatively short, so we can adapt with a few months' notice. On long-haul routes, however, we need to remain realistic: destinations such as Seattle or Nairobi need to be announced sufficiently in advance to be well marketed.
How long does it take between a decision being taken and the opening of a new line?
P.-O. B. - If we take the example of Joon in FortalezaWith the launch of our new route, we will have taken around a year from the time we identify the potential of the route to the actual launch. The time obviously varies according to the type of destination, but we generally have to put the product up for sale six months in advance. Sometimes even longer, for destinations targeting tour operators. We speed up the decision-making processA wrong choice of destination, aircraft type or timetable can cost millions, even millions of euros. tens of millions of euros. So there's no need to roll the dice when it comes to targeting destinations!
How is the choice made today between the number of destinations and consistency in terms of frequency?
P.-O. B. - A few years ago, the priority was to build a solid programme in terms of frequencies, particularly for the business customerseven if it means limiting the number of destinations. The paradigm has shifted somewhat. Distribution methods have changed, and everything moves much faster. Our customers no longer book their holidays six months in advance, or at least not any more. So we can afford to offer destinations for sale later. From this point of view, we have also become much more flexible. inspired by KLMwho wasn't afraid to test certain destinations.
Joon allows us to test ideas before rolling them out across the Air France network.
Qantas recently launched a flight between London and Perth. To what extent is the performance of the new devices changing the mapping of the network?
P.-O. B. - There is no doubt thatarrival of 787s and A350s on Joon is encouraging us to go for long-haul destinations. But very long-haul, record-breaking destinations remain niche offerings. The case of Qantas is different, given Australia's geographical location. From our point of view, there are still plenty to do within a twelve or fifteen hour flight radius.
Joon has been presented as a "laboratory" airline. What experiments do you plan to develop? Will the entertainment system be extended, for example?
P.-O. B. - This could be duplicated at Air France, but before long the entire Air France fleet will be connected. We are also looking at other initiatives, such asexperiment with paid catering in economy class on European flights. This was set up by some of our competitorsbut it's an approach that presents a number of challenges. significant risk in terms of image. Visit flights without baggageor the use of the IFE (In-flight entertainment) system as a payment terminal are other avenues to explore. Joon allows us to test ideas before rolling them out across the entire Air France network. But Joon is also a tool that enables us to attract another type of customer to Air France, in addition to business travellers in particular.
