Air Seychelles stated (03-Jun-2011) Seychelles’ tourism development is to largely benefit from the signing of a new joint air services agreement between Air France and Air Seychelles, effective 01-Jun-2011. The agreement was signed following a review by Air Seychelles on its operations to Europe and after two rounds of talks in Paris and Seychelles during the past two months. The long-standing partnership between the airlines started in 1997. According to the codeshare signed in 2009, Air Seychelles operates the Seychelles-Paris route and the seats are shared among both airlines. Each company remains responsible for the commercialisation of its capacity. The terms and conditions of the new agreement aim at improving the route economics for Air Seychelles, thanks to a new balance between seat price, capacity share and fuel costs adjustment mechanism. [more]
Air Seychelles and Air France sign codeshare renewal
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Air France-KLM's latest strategic project, 'Trust Together', follows its Transform 2015 and Perform 2020 programmes. In fact, it complements Perform 2020, rather than replacing it, at least until fuller details are announced in 2Q2017. After years of financial under-performance and market share erosion by Gulf airlines on long haul and LCCs on short/medium haul, CEO Jean Marc Janaillac aims to regain the offensive with this project.
But, in the absence of a substantial change of heart by the group's unions, there is little to suggest any "new" initiative will have a greater impact than its predecessors. The mere fact that Mr Janaiiac is forced to deny that the new long haul airline, codenamed "Boost", will be positioned as "low cost" is a clear enough indication of the task ahead. Indeed, to consider establishing anything else would be irrelevant in today's world.
Presumably so as not to rock the union boat plans are for only an ineffectual 10 aircraft by 2020. Just as with its short/medium haul LCC, Transavia, the scale and scope of the new long haul airline are likely to be subject to negotiation with Air France pilots. Transavia itself will now focus on routes from France and the Netherlands, implying an end to the troubled plans for Transavia Europe.
Air France-KLM: long haul low cost airline could be part of new CEO's vision as French Blue enters
Air France-KLM chairman and CEO, Jean-Marc Janaillac, who took charge in Jul-2016, has talked about the possibility of launching long haul low cost operations (Bloomberg/luchtvaartnieuws.nl, 20-Sep-2016).
If Air France-KLM were to enter this segment it would be the second of Europe's big three legacy airline groups to do so, after the Lufthansa Group. Ironically, there is no long haul low cost competition to Lufthansa in Germany. By contrast, IAG faces more such competitors in the UK than either of its two major rival groups in their largest home market, but currently has no plan for such an operator.
Air France-KLM management told analysts on a conference call in May-2016 that it was sceptical about the sustainability of year-round profits for long haul low cost. However, new competition has prompted Mr Janaillac to look more closely at this market segment. Since Jul-2016 Norwegian has commenced trans-Atlantic long haul operations from Paris CDG. In addition, since Sep-2016, the new-start long haul LCC French Blue now flies on routes to the Caribbean. Mr Janaillac is expected to report on his strategic vision for Air France-KLM in early Nov-2016. Labour relations will be crucial to the group's development – not least in the area of long haul low cost.