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A subsidiary of the Air France-KLM Group and based in Paris, Air France is the national airline of France. The airline merged with Dutch flag carrier KLM in 2004, forming one of the world's largest airlines, carrying over 74.5 million passengers in 2008-2009. The airline is based at Paris Charles de Gaulle Airport, with smaller hubs at Paris-Orly, Lyon and Nice airport. Air France operates an extensive global network, serving almost 200 destinations across North America, South America, Asia and Africa. Air France is a founding member of SkyTeam.
Location of Air France main hub (Paris Charles De Gaulle Airport)
Air France-KLM share price
2,362 total articles
236 total articles
Etihad's announcement that it was buying 33.3% of Switzerland-based Darwin Airline was made on the first day of the Dubai Airshow and was easily lost in the fury of orders announced that day.
Darwin only flies aircraft with 50 seats, less than the number of premium seats that will be on many of the 350-plus widebody aircraft Gulf carriers ordered at the airshow. But the announcement is significant, and three reasons stand out.
First, for Etihad the carrier will "connect the dots" in Europe for itself and partners, linking hubs but also tertiary cities, which have largely been passed over by Gulf carriers. Many of these cities are served by the Lufthansa Group. This gives rise to the second significant impact: on Europe's legacy carriers. Gulf carriers changed their long-haul business while European LCCs decimated short-haul. Regional traffic was always typically a burden, and will come under further pressure following Etihad's announcement. Third is that Darwin Airline will re-brand as "Etihad Regional", and Etihad openly states Darwin is only the first carrier to use this new brand. As the industry still digests Etihad's partnership and equity strategy, Etihad promises to change another component of aviation – and raise the stakes in the liberalisation of the industry, especially by stamping its name on a European carrier.
Air France-KLM reported an improved operating result for 3Q2013 and confirmed its aim to increase 2H2013 operating profit by the same year-on-year amount as in 1H2013. It has provided more details on the additional restructuring measures previously announced relating to headcount reduction and planned capacity in medium-haul and cargo.
However, while the group expects losses in medium-haul and cargo to reduce significantly in 2014, it does not expect to see the full impact of these measures until 2015.
As a result, it has pushed back its net debt reduction target by one year and focused its 2014 EBITDA target at the lower end of its previous range. Unfortunately, targets that start to slip have a habit of becoming more slippery.
A 16-day US Government shut-down and continuing pressure created by the devaluation of Japan’s currency did not hinder Delta’s 3Q2013 earnings growth as profits improved by USD444 million year-on-year to USD1.2 billion (excluding special items).
With corporate demand holding steady and holiday bookings looking relatively solid for Nov-2013 and Dec-2013, Delta CEO Richard Anderson is declaring the carrier will post an all-time record profit during 2013.
Delta throughout much of 2013 has been riding a wave of positive momentum despite some miscalculation in the spool-up of its Trainer refinery, and the continuing pressure from the devaluation of the Japanese yen. Even as it makes proclamations of record profits for 2013, Delta’s CEO Richard Anderson stresses that the carrier is keeping its head down as it works to continue the carrier’s advancement.
Air France celebrates its 80th birthday this week, amid claims by Alexandre de Juniac, Air France-KLM Group chairman and CEO, that it risked dying or “becoming a small regional carrier” were it not for the latest cost saving plans (Les Echos, 7-Oct-2013). Now, he says, Air France “is on the way to being saved”. He is counting on new restructuring measures that were presented to Air France’s works council on 4-Oct-2013 to restore the financial health of the bigger and more troubled of the group’s two main airlines.
In 1H2013, the Transform 2015 programme achieved profit improvements of EUR100 million, but the group conceded that Air France would not achieve its breakeven target in 2013. It said that additional measures would be needed to improve results in the cargo division and in Air France’s medium-haul operations.
As expected, the measures include a new voluntary redundancy plan, a reorganisation of the French regional bases, a reduction in Air France freighter capacity, cuts to Air France’s point-to-point medium-haul network and growth for LCC subsidiary Transavia France. Are even these measures radical enough to restore Air France to a sustainable profit path?
Africa’s unenviable record of government interference in the continent’s aviation system is demonstrated by no less than nine carriers currently surviving at the behest of their respective governments through a variety of financial support mechanisms collectively worth about USD2.5 billion.
In most cases this support serves only to distort any prospect of a level playing field, preventing privately owned carriers from competing effectively. Nigeria is even taking this a stage further as state support of private carriers is being undermined by a desire to relaunch a government owned national flag carrier. In other cases, such as Uganda, new state-owned airlines are planned to compete with successful privately owned operators in markets that often lack sufficient demand to support them both. Whatever the motives, and many of them are questionable at best, the outcome is sadly predictable.
In most cases Africa’s national carriers suffer at the hands of government mismanagement and interference, key among them is the continent’s largest airline, South African Airways (SAA) which is the subject of the biggest turnaround plan currently under way. This could offer a vital precedent if it succeeds - and if it doesn't.
Etihad has launched services to Ho Chi Minh, becoming only the tenth non-Asian airline serving Vietnam. Abu Dhabi is now one of only seven destinations outside Asia-Pacific that are served non-stop from Vietnam.
Vietnam remains an under-served long-haul market with huge potential. But Gulf carriers have been quick to recognise the opportunities in Vietnam and are now among Vietnam’s largest international carriers.
Etihad follows rival Emirates, which launched services to Ho Chi Minh in Jun-2012. Qatar began serving Ho Chi Minh in 2009 and added Hanoi in late 2010. It is now Vietnam’s third largest foreign carrier.
Air France Fleet Summary: as at 1-Dec-2013
Air France projected delivery dates for aircraft purchased from OEMs and leased from lessors new aircraft order pipelines as at 2-Dec-2013
Air France fleet as at 1-Dec-2013
Air France fleet breakdown for aircraft as at 1-Dec-2013
Air France average fleet age
Air France owned vs leased for aircraft (at 2-Dec-2013)
Most popular aircraft types
Air France seats per aircraft
Air France average sector length (2-Dec-2013 to 8-Dec-2013)
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