Trust Together: a boost for Air France on long-haul routes

On Thursday, the management of Air France-KLM presented the details of the Trust Together plan. Among the nine strategic pillars, the group will focus in particular on the launch of a new airline which, while not officially low-cost, should return loss-making routes to profitability.
Photo Florian Guillemin
Jean-Marc Janaillac, CEO of the Air France KLM group, flanked by Pieter Elbers (KLM) and Franck Terner CEO of Air France

The years went by, the plans followed one another and their titles changed. But in fineThe challenge facing the Air France-KLM group remains much the same: to reduce costs while improving its product. Like Alexandre de Juniac before him, Jean-Marc Janaillac is entering this race for competitiveness, well aware that he will need to be agile. As a preamble to the press conference held on 3 November at the Docks d'Aubervilliers, the group's new CEO spoke about a projectboth ambitious and realistic". Called "Trust Together", this plan is a "rider" to the previous "Perform 2020" plan, whose competitiveness objectives are confirmed.

a dozen aircraft by 2020

The new roadmap is based on 9 strategic axes. Jean-Marc Janaillac, flanked by Pieter Elbers (KLM) and Franck Terner - who was quick to confess that he had been CEO of Air France for "twelve hours" - went through them one by one. The cargo business, maintenance and optimised aircraft utilisation - Air France will have to catch up with its cousin KLM in terms of the average time an aircraft is used - are among the group's priorities. But it is of course the project for a new airline that has caught the attention of the international media. The project, temporarily called "Boost", will involve around ten aircraft between now and 2020. These will take off from Paris-CDG airport to long-haul and medium-haul destinations.

Unlike a company like Norwegian, which has launched its flights between Paris and the United States During the summer, Air France KLM's senior management refused outright to talk about "long-haul low-cost". However, this label was attached to the future airline even before it was officially named. " Launching a long-haul Transavia would have made no sense in the face of competition from Gulf carriers" sums up Jean-Marc Janaillac.

"I know thatthe creation of a low-cost airline was long overdue (...)"explains Jean-Marc Janaillac. "Our analysis of the situation showed us that Air France's biggest loss-making routes [35%, compared with 15% at KLM, editor's note] were not those competing with future or current low-cost tourist airlines. (...) The routes where Air France is experiencing the greatest difficulties are those in competition with the Gulf carriers, (...) which are a mix of business and leisure travellers". The new company's network will therefore target the most problematic lines in terms of profitability - Mr Janaillac mentioned 10% of "heavily loss-making" routes at Air France - particularly in South-East Asia. 30% of the network will consist of new lines according to the roadmap presented on Thursday.

A connected 100% fleet, an innovation laboratory

Without being low-cost, the new airline will focus on a denser configurationThe new cabin will be equipped with a full reclining seat. The aircraft will nevertheless be equipped with fully reclining seats. And comfort will be superior to that of aircraft not yet equipped with Air France's new Best cabins. In addition, this "Boost" project will focus heavily on digital technology, with a connected 100% fleet, and will act as an "innovation laboratory", according to the group's management.

This new strategic plan should enable Air France KLM to achieve profitable growth of 2 to 3% on long-haul business until 2020. By that date, according to the forecasts published by the group's management, turnover will reach 28 billion euros, for 100 million passengers carried on a fleet of 435 aircraft, excluding regional aircraft.