France's Aéroports de Paris stated (28-Nov-2012) the Council of Ministers appointed by decree Augustin de Romanet as chairman and CEO of Aéroports de Paris. The group's board of directors co-opted him for the position of board member during the board of directors' meeting on 12-Nov-2012. Mr Romanet will officially become chairman and CEO on 29-Nov-2012. [more - original PR]
Aéroports de Paris Augustin de Romanet appointed chairman and CEO
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Taiwan's China Airlines considers Airbus order as a means to winning French traffic rights
China Airlines is weighing an order for Airbus aircraft that it expects will result in the French state granting traffic rights to allow China Airlines to fly to Paris, providing competition to China Airlines' local competitor EVA Air – the only nonstop operator on the route.
Since a 2016 government change in Taiwan, China Airlines – long a sleepy government airline – has shown greater interest in growth. However, Europe is not a strong market for the airline. In Paris there is opportunity to work with fellow SkyTeam member Air France. This potentially makes Paris less costly for China Airlines than its planned resumption of service to London.
China Airlines is once again planning a narrowbody order to replace and supplement its existing 737-800 fleet. The order will reflect how optimistic China Airlines is about the turbulent cross-strait market.
The A320neo is favoured, and it is unclear whether an order might also mean that China Airlines exercises its six options for the A350. China Airlines has received five of a 2008 order for 14 A350s. The correlation between Airbus aircraft orders and French traffic rights is sensitive, but this is hardly the first example. Taiwan and the US, home to Boeing, have an open skies agreement.
China and France expand flights for airlines, giving China aeropolitical negotiating leverage
China and France have agreed to a significant expansion of flights between their countries. Chinese airlines, which have no more than 50 weekly flights to France, will be permitted to grow to 126 weekly flights within a few years. This tranche of rights will likely double the number of Chinese airlines in France (currently four) and take Chinese airlines to serving French cities other than Paris.
Air France will likely grow partnerships with SkyTeam's China members, although Air France will need to make concessions on its existing China JVs. It is unclear whether Air France will revisit considerations of investing in China Southern.
Chinese airlines will become France's second largest source of foreign long haul flights, and in the long term China could surpass the US. For China, France could become its third largest long haul market after the US and Australia. France is China's third major aeropolitical expansion in recent months, after the UK and Australia. This could give China leverage to press the US and Canada to expand traffic rights, although these markets are far more convoluted.