Air France-KLM's new 'Boost' airline to be aimed at millennials, but flown by same old pilots

At its investor day on 12-May-2017, Air France-KLM gave an update on plans for a new "lower" cost airline (project name 'Boost') alongside Air France at Paris CDG. It hopes Boost can regain market share, particularly from Gulf airlines, on loss making 'ultra competitive routes' that combine both business and leisure. If successful, Boost should allow Air France to return to growth.

The new airline aims to launch in winter 2017 and to operate 28 aircraft (10 long haul and 18 medium haul) by summer 2020. It will use Air France pilots, but its ex fuel unit cost target is 15% to 18% below that of Air France - mainly from a new cabin crew agreement and savings in areas such as catering and station activities. Further unit cost savings are anticipated when Boost's long haul fleet switches from A340s to A350s, from winter 2019.

Air France-KLM has not yet announced a brand name for the new airline, but says it will be positioned towards 'millennials' as a market segment. The Boost airline will also be Air France-KLM's digital laboratory, but this stops short of the dedicated digital innovation incubator/accelerator programmes of leading European competitors. A final agreement with pilots remains on the critical path to the launch of Boost.