Tag Archives: Air France-KLM

Air France-KLM deny reports they have made an offer to take over Alitalia

Air France and KLM Royal Dutch Airlines today (January 13, 2018) issued this following statement:

The Air France-KLM group would like to confirm that it has taken no part in the process launched by the Italian authorities to take over Alitalia.

As such, the group has not had access to any confidential information.

Air France-KLM denies having made an offer to take over Alitalia.

Photo: Air France-KLM.

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Air France-KLM outlines the changes and strategies for their Summer Schedule

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) have outlines the changes for its upcoming Summer Schedule effective from March 29 through October 24, 2015. Overall the Air France-KLM Group capacity is increasing (+ 1.7%) compared with the summer 2014 season.

Long-haul operations are increasing by 1.8%. Medium-haul activity is continuing its reorganization and is decreasing by 1.9%. Transavia’s low cost operations (+ 7.8%) are undergoing strong development in France and are being consolidated in the Netherlands.

Here are the highlights:

Long-haul: Air France-KLM is increasing services to Canada and is launching two new routes: Vancouver operated by Air France from March 25, 2015 and Edmonton served by KLM from  May 5, 2015. The Group is also improving its position in South America thanks to the launch of a new KLM route to Bogota and Cali (Colombia) from March 31, 2015.

Medium-haul: Air France-KLM is developing its European network on departure from the Amsterdam-Schiphol hub by adding three new destinations operated by KLM Cityhopper as from May 18, 2015: Belfast (Northern Ireland), Krakow (Poland) and Montpellier (France). At Paris-Charles de Gaulle, Air France is increasing capacity to Bordeaux (France), Naples (Italy), Billund (Denmark), Bucharest (Romania) and Budapest (Hungary).

On departure from Paris-Orly and the regional airports, the Group continues to reorganize its short-haul activity, currently regrouped within HOP! Air France’s operations.

Low-cost operations: Transavia is continuing its rapid development in France (+30%) and is consolidating its activity in the Netherlands. The company is launching 14 new routes, while strengthening its offer of flights to the most popular summer destinations.

New products and services: Air France-KLM is continuing its move upmarket. At the end of the summer season, 20 Air France Boeing 777 (above) will be equipped with the latest BEST cabins. After renovating its World Business Class cabin on all its Boeing 747-400, KLM is gradually equipping its fleet of Boeing 777 with its new World Business Class and Economy Class. From April 2015, Air France is also introducing a new leather seat on 24 Airbus A319 on departure from Paris-Charles de Gaulle. It will then equip 25 Airbus A320 in the first half of 2016.

Partnerships: As well as strengthening its joint ventures (Delta, Alitalia, China Southern, China Eastern, Kenya Airways, Air Mauritius) and its strategic agreements (GOL), Air France-KLM is continuing the development of its partnerships all over the world. To offer more and more flight frequencies and destinations, the Group is extending its cooperation with the Canadian airline WestJet. The Group also has strong ambitions In Asia, illustrated by the signing of a cooperation agreement between KLM and Xiamen Airlines and the code-share agreement with Garuda on flights between Amsterdam and Jakarta.

LONG-HAUL: +1.8%

Air France-KLM’s long-haul activity is increasing by +1.8%.

North America

For the 2015 summer season, Air France-KLM is increasing services to Canada. As of March 25, 2015, Air France is launching a new route to Vancouver, with up to 5 weekly flights from Paris-Charles de Gaulle. KLM is also introducing a new service between Amsterdam-Schiphol and Edmonton on May 5, 2015, with 3 weekly flights, then 4 weekly flights as of  June 22, 2015.

Air France-KLM is developing its partnership with the Canadian airline WestJet, by offering new connecting opportunities in North America in addition to the new Paris-Vancouver and Amsterdam-Edmonton routes. Moreover, the Group is maintaining its close cooperation with Delta Air Lines as part of the trans-Atlantic joint venture.

Between May and September 2015, the seasonal service to Minneapolis-Saint Paul (USA) will be resumed from Paris-Charles de Gaulle. To meet market demand, Air France will be operating a second daily flight to San Francisco (USA) during the peak summer season (from mid-June to the end of August 2015). KLM is also further extending its second flight to Los Angeles to the full summer period, offering 12 weekly frequencies.

Central and South America and the Caribbean

As from March 31, 2015, KLM is launching a new service to Bogota and Cali (Colombia) from Amsterdam-Schiphol with 3 weekly frequencies. As a continuation of the winter season, Air France is increasing capacity to Panama City, with 5 weekly flights. Services to Brasilia (Brazil), launched in summer 2014, are maintained with 3 weekly frequencies.

In addition, Air France-KLM is maintaining its close cooperation with the Brazilian airline GOL, in order to offer numerous connecting opportunities to its customers on the Brazilian domestic network.In the Caribbean, as a continuation of the winter schedule, Air France-KLM is adjusting capacity during the peak summer season. The Company will offer up to 13 weekly flights to Pointe à Pitre and up to 11 weekly flights to Fort de France. Moreover, during the peak summer period, KLM will be operating a second nonstop flight twice a week to Curacao, in addition to the daily flight from Amsterdam-Schiphol.

Asia

Air France is continuing its daily service to Hong Kong (China) by Airbus A380 (5 weekly flights) and by Boeing 777-300 (2 weekly flights). The Company is also increasing capacity to Seoul (South Korea), serving this destination by Boeing 777-300 with 383 seats as well as to Singapore, with three additional flights operated during the peak summer period. Air France is continuing to serve Tokyo-Haneda Airport (Japan) up to 13 times a week in addition to the daily flight to Tokyo-Narita which provides connections to Noumea (New Caledonia).

The Group is also continuing to strengthen its cooperation with its Asian partners to offer an even wider choice of flights and destinations. In particular, KLM and Garuda Indonesia have set up a code-share agreement on both airlines’ flights between Amsterdam and Jakarta (Indonesia). KLM has also signed a cooperation agreement with the Chinese airline Xiamen Airlines, illustrating their commitment to strengthening accessibility between the Netherlands and China.

Africa and the Indian Ocean

As a continuation of the winter season, Air France will serve Abidjan (Ivory Coast) daily, including 3 weekly flights by Airbus A380. The Company is also increasing capacity to Dakar (Senegal), by operating the route from Paris-Charles de Gaulle by Boeing 777-300 with 383 seats.

In East Africa, KLM is continuing to specifically adjust its network to market expectations by increasing capacity to Dar es Salaam (Tanzania) and Entebbe (Uganda). Both destinations are served non-stop three times a week from Amsterdam-Schiphol, providing new connecting opportunities to Europe and North America in particular. On the other days these destinations are offered respectively as a continuation of the services to Kilimanjaro (Tanzania) and Kigali (Rwanda). KLM is also strengthening its cooperation with its partner Kenya Airways by offering new connections to Zambia, Zimbabwe, Zanzibar and the Indian Ocean, as a continuation of the service to Nairobi airport which boasts new airport facilities.

In the Indian Ocean, Air France serves Reunion Island up to 11 times per week, including 5 night flights.

Middle East

Air France’s new BEST cabins have been flying to Dubai (UAE) since February 23, 2015. In September 2015, these cabins will also be available to Beirut (Lebanon). Furthermore, the Group maintains its code-share agreements with Middle East Airlines, Saudia and Etihad.

New long-haul products and services

Air France-KLM is continuing to roll out new products and services aiming to be among the best in the world.

By the end of the 2015 summer season, the new Air France BEST cabins will equip 20 aircraft and fly to 18 long-haul destinations:

North America: Los Angeles, New York, Toronto, Washington;
South America: Sao Paulo;
Africa: Bangui, Douala, Libreville, Malabo, Yaoundé;
Middle East: Beirut, Dubai;
Asia: Beijing, Guangzhou, Jakarta, Shanghai, Singapore, Tokyo-Haneda.

On its BEST fleet (Boeing 777-200 and 777-300), Air France is adapting to customer demand during the peak summer period (from mid-July to the end of August) by adjusting in just ten hours the seating configuration of its aircraft. This ‘quick change’ can replace certain Business class seats with additional Economy seats. These additional seats correspond to the operation of the 3 additional Boeing 777-200 during the entire season.

Above Copyright Photo: Ton Jochems/AirlinersGallery.com. The pictured Boeing 747-406 PH-BFT (msn 28459) now wears the updated 2014 livery.

Furthermore, having renovated its World Business Class cabin on all its Boeing 747-400 (above), KLM is gradually equipping its Boeing 777-200 and then its 777-300 with its new World Business Class and Economy Class. At the end of 2016, 80% of KLM’s fleet will be equipped with fully renovated cabins.

MEDIUM-HAUL: -1.9%

For the 2015 summer season, the Group’s medium-haul capacity is continuing to readjust and is down by -1.9%.

On departure from the hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol

For the 2015 summer season, KLM is expanding its European network on departure from its hub at Amsterdam-Schiphol by adding three new destinations: Belfast (Northern Ireland), Krakow (Poland) and Montpellier (France). These new services will be operated from 18 May 2015 with one daily flight. Furthermore, the number of daily KLM flights to Florence and Basel is increasing from 3 to 4.

On departure from Paris-Charles de Gaulle, Air France is adding a daily flight to Bordeaux (France), Naples (Italy), Billund (Denmark), Bucharest (Romania) and Budapest (Hungary). As of April 2015, the company will be introducing an upgraded product (greater flexibility for business trips, new gourmet attentions) as well as a new leather seat which will be progressively installed on board 24 Airbus A319s. This seat will subsequently equip 25 Airbus A320s during the first half of 2016.

On departure from Paris-Orly and the French regions

As from summer 2015, HOP! Air France is regrouping the entire short-haul network under a single commercial offer. This unified network includes all short-haul routes from Paris-Orly and the French regions. These routes are operated by Air France Airbus or HOP! regional aircraft.

Above Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Hop! For Air France ATR 42-500 F-GPYL (msn 542) taxies at Nantes, France.

HOP! Air France is continuing to restructure its network during summer 2015 –

On departure from Paris-Orly, HOP! Air France is rationalizing its offer to Toulouse, Strasbourg and Mulhouse by decreasing the number of frequencies while increasing the capacity of its aircraft.

On departure from the French regions, as a continuation of the adjustments initiated in the winter, HOP! Air France is suspending its international flights. However, to meet customer demand, certain destinations will still be operated during the summer holiday period, notably routes to Beirut and North Africa on departure from Marseille; Spain, Italy and Greece on departure from Toulouse; Tel Aviv and Athens on departure from Nice.

Transavia: +7.8%

As a continuation of the winter season, Transavia is continuing its rapid development in France (+30%) and is consolidating its operations in the Netherlands (-0.8%).

With the ambition to be the leading low-cost airline in terms of destinations from Paris-Orly in 2015, Transavia France is launching 10 new routes this summer:

– On departure from Paris-Orly: Valencia, Dublin, Munich, Thessaloniki, Tirana, Warsaw, Casablanca, Fez and Amsterdam.

– On departure from Nantes: Madrid.

Furthermore, the company is increasing frequencies on many routes including Barcelona, Madrid, Oporto and Lisbon.

Above Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Now painted in the old 2005 livery, Transavia’s (Netherlands) Boeing 737-7K2 PH-XRE (msn 30668) arrives in Las Palmas.

In the same way, Transavia Netherlands is concentrating its activity on the hub at Amsterdam-Schiphol, where it will offer new frequencies to Tel Aviv, Larnaca, Malta and Paris-Orly. The Company is also increasing its offer of flights to Alicante, Barcelona, Malaga, Pisa, Naples and Thessaloniki.

Transavia Netherlands will also operate a new route from Rotterdam-The Hague to Berlin. On departure from Eindhoven, the service launched to Athens in February 2015 will continue this summer.

To accompany this rapid growth, Transavia has ordered 20 Boeing 737-800, with 17 firm orders and another three options. These aircraft will support the rapid growth of Transavia France and the development of Transavia Netherlands. The delivery of these aircraft will begin in January 2016 and will continue until 2018.

Top Copyright Photo: Christian Volpati/AirlinersGallery.com. Air France’s Boeing 777-328 ER F-GZNE (msn 37432) in the SkyTeam alliance livery taxies to the runway at the Paris (CDG) hub.

Air France aircraft slide show: AG Airline Slide Show

KLM aircraft slide show: AG Airline Slide Show

Transavia (Netherlands) aircraft slide show: AG Airline Slide Show

Transavia (France) aircraft slide show: AG Airline Slide Show

Hop! Air France aircraft slide show: AG Airline Slide Show

AG Up-close action photography

Air France-KLM Group 2014 profit falls nearly 15% due mainly to the pilot strike

Air France-KLM Group (Air France) (KLM) (Paris and Amsterdam) reported its pre-tax 2014 earnings fell to 1.59 billion euros ($1.81 billion) from 1.86 billion euros ($2.1 billion) for the previous year. As a result, the group is delaying deliveries of aircraft for both Air France and KLM. Air France will also maintain its Airbus A380 fleet at 10 aircraft and delay taking delivery of the last two.

Read the the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. KLM is celebrating 95 years of flying and is adding special 95 Years logos on select aircraft including the pictured Boeing 777-306 ER PH-BVK (msn 42172) at the AMS hub.

Air France aircraft slide show: AG Airline Slide Show

KLM aircraft slide show: AG Airline Slide Show

AG Aviation friend

Air France-KLM to defer 10 Boeing 777-300 ER deliveries as it issues its third profit warning in 6 months

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) have announced they are going to defer delivery of their combined 10 Boeing 777-300s on order due to its third profit warning in six months according to Reuters. This raises concerns for Boeing for a potential production gap for Boeing for the 777 production line until the new 777X enters production.

Read the full report: CLICK HERE

Meanwhile Air France-KLM issued this statement:

During its meeting on December 18, 2014, the Air France-KLM Board of Directors reviewed the updated financial outlook for the fourth quarter 2014.

The Group is revising down its 2014 EBITDA target by an additional €200 million compared with the targets communicated on July 8 and October 8. There are four factors behind this revision:

The persistent weakness in unit revenues in several long-haul markets, witnessed since the summer and still prevailing in early December.

The updating of the estimated impact of the Air France pilots’ strike on the fourth quarter including, in particular, a higher-than-expected re-invoicing charge for passenger transportation by other airlines during the strike (‘interline’ invoicing).

Due to new fiscal regulations, the group will not recognize in its 2014 EBITDA a positive pension cost adjustment that was previously expected. Any potential adjustment will be booked under ‘other non-current income and expenses’.

A limited fuel price effect in the fourth quarter, in view of the continued decline in the crude oil price which has fallen by more than that of jet fuel, of the structure of the procurement contracts and of the fuel hedging portfolio.

As announced in the third quarter results press release, with no impact on the principles of the Perform 2020 plan, the Group has decided to revise its 2015 and 2016 business plans to take into account the consequences of the pilots’ strike and of the weaker unit revenue trend that has developed since the summer. The Group is thus planning further unit cost* reduction measures and a significant scale back in its investment plan.

Air France-KLM’s Chairman and Chief Executive Officer, Alexandre de Juniac, made the following comments: “The Perform 2020 dynamic is under way across all the Group’s activities, based on the imperatives of an ongoing improvement in competitiveness and strict financial discipline. By significantly stepping up our cost-cutting efforts and adapting the investment plan, Air France-KLM can gain the resources and be well prepared to tackle 2015 despite the difficult competitive environment.”

Top Copyright Photo: TMK Photography/AirlinersGallery.com. Air France’s Boeing 777-328 ER F-GZNI (msn 39973) taxies at Toronto (Pearson).

Air France aircraft slide show: AG Slide Show

KLM aircraft slide show: AG Slide Show

Bottom Copyright Photo: Nick Dean/AirlinersGallery.com. KLM’s Boeing 777-306 ER PH-BVC (msn 37582) departs from Paine Field.

Air France and KLM announce their schedule changes for the winter season

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) have issued details of their winter schedule from October 26 through March 28, 2015. Overall group capacity will only increase by 0.7 percent as Air France tries to recover from its devastating pilot strikes. However Transavia will see a 13.3 percent increase in capacity as the group tries to drive more operations to the lower cost divisions. Air France is cutting dome domestic AF services with the goal of breaking even by 2017. Here is the full report:

For the 2014-15 winter season (from October 26, 2014 to March 28, 2015), Air France-KLM Group capacity is scheduled to increase by 0.7%, with an increase of 0.1% for passenger operations(Air France, KLM and HOP!) and 13.3% for low-cost leisure operations (Transavia in France and the Netherlands).

Short and medium-haul capacity at the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs will increase slightly (+3.1%). In the same way as last summer, point-to-point short and medium-haul capacity will continue to decrease (-11.3%). Transavia capacity will increase by +13.3%, with growth concentrated on the French market (+56%).

Air France-KLM has chosen to move upmarket with the progressive introduction of new products and services of the highest global standards.

On the long-haul network, 22 Boeing 747-400s have been equipped with KLM’s new World Business Class and 777-200s will be finished before the summer of 2015, followed by implementing the new World Business Class in the 777-300s. By the end of 2016 about 80% of the KLM fleet will be done. Air France continues to roll out its new Best cabins: five Air France Boeing 777s will be equipped by end-2014. Flights to New York, Singapore and Jakarta have already been equipped with these brand new products. Services to Tokyo-Haneda, Shanghai, Dubai, Houston, Sao Paulo, Douala and Malabo will gradually be added to this list in winter 2014.

Furthermore, this winter the Company will operate two new destinations by Airbus A380: Miami and Abidjan, in addition to Los Angeles, New York, Johannesburg, Hong Kong and Shanghai already served by the super jumbo this summer.

Long-haul: + 0.3%

On the long-haul network, Air France-KLM Group capacity is up slightly compared with winter 2013-14 at +0.3%.

On the North American network, capacity is up +2.4% compared with winter 2013-14

KLM is once again increasing capacity to Atlanta, from 7 to 12 weekly flights, in response to market demand. These new frequencies will facilitate connections with the Delta Air Lines network in Atlanta, one of the main hubs served by the Air France-KLM partner.

The Air France Airbus A380 will be flying the Miami route as from early December. Three U.S. destinations will thus be operated this winter by the A380 on departure from Paris-Charles de Gaulle – New-York-JFK, Los Angeles and Miami.

In Mexico, KLM will increase its frequencies to Mexico City, from 7 to 9 weekly flights in November and December, in line with seasonal demand. Air France capacity on a code-share basis with Aeromexico is increasing with 13 new destinations in Mexico and Central America on departure from Mexico City.

In Central and South America, Group capacity is up +1.1%.

Air France continues to serve Brasilia (Brazil) three times a week and Montevideo (Uruguay) is served daily in continuation of Buenos Aires (Argentina). The Company is increasing capacity to Panama City, increasing from three to five weekly frequencies by B777-200 and benefits from Copa’s Central American hub thanks to the commercial agreement between the two airlines.

Air France-KLM continues its close cooperation with the Brazilian airline GOL in order to take advantage of its joint network in the region and offer its customers improved connecting opportunities with the Brazilian domestic network this winter.

In the Caribbean, Air France-KLM capacity is revised downwards (-2.2%). Between mid-December and mid-January, Air France will operate 13 weekly flights (instead of 14) to Pointe-à-Pitre and 11 weekly flights (instead of 14) to Fort-de-France. KLM will increase capacity in the Caribbean in response to increasing demand for these destinations.

In Asia, Group capacity is up slightly at +0.7%.

In continuation of the summer schedule, Air France is continuing to serve Tokyo-Haneda airport up to 11 times per week in addition to the daily flight to Tokyo-Narita, providing connecting opportunities to Noumea (New Caledonia). Services to Jakarta (Indonesia) in continuation of the Singapore flight are also maintained on a daily basis.

To take advantage of the seasonal nature of certain destinations, Air France is increasing capacity during the peak winter season between mid-December and mid-March to Bangkok (Thailand) (one daily flight) and Kuala Lumpur (Malaysia) (addition of a fourth frequency).

In China, capacity to Wuhan is being increased by one weekly frequency, with three weekly flights. Guangzhou will be served by four weekly flights.

KLM continues to cooperate with its Asian partners to offer customers a wider choice of connecting flights and even more destinations in Asia.

Africa: capacity slightly down by -0.8%

In Africa, Group capacity is slightly down to -0.8%.

Air France is adjusting its flight offering and reinforcing its most buoyant routes such as Abidjan (Ivory Coast), with the entry into service of the A380, and Pointe Noire (Congo) with the introduction of a sixth weekly frequency.

In East Africa, KLM is reorganizing its network to adapt it to specific market expectations. Capacity to Dar es Salaam (Tanzania) and Entebbe (Uganda) is up. The two cities are now served directly three times a week. On the other days, they are served via Kilimanjaro (Tanzania) and Kigali (Rwanda) respectively. KLM has suspended direct service to Harare (Zimbabwe) and Lusaka (Zambia). These two destinations remain in the Group’s capacity and are currently served by Kenya Airways via Nairobi (Kenya).

In the Indian Ocean region, Air France-KLM is adjusting capacity (-2.8%). From mid-December to mid-January, Air France will offer 11 flights to Reunion island (instead of 12) and an additional flight to Mauritius.

Middle East: capacity down by -5.2%

In the Middle East, Air France-KLM capacity is down by -5.2%. KLM is again increasing capacity to Abu Dhabi (United Arab Emirates) in combination with Bahrein, as a result of its optimized cooperation with Etihad Airways, Air France-KLM’s partner. KLM will serve this destination using an Airbus 330-300, instead of an A330-200. Dubai will be served by the Air France B777-300 equipped with the new Best cabins in early 2015.

Medium-haul

On the medium-haul network, the 2014-15 winter season sees the full effect of the measures of the Transform 2015 plan.

On departure from the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs: capacity increases by +3.1%
Air France and KLM continue to serve the routes launched this summer: on departure from Paris-Charles de Gaulle, Stavanger (Norway) with two daily frequencies; on departure from Amsterdam-Schiphol, two daily flights to Turin (Italy), one daily flight to Bilbao (Spain) and Zagreb (Croatia).

KLM strengthens its position in Scandinavia by increasing frequencies to Bergen (Noway) with three daily flights and five daily flights to Billund (Denmark). KLM will also increase capacity to Moscow (Russia) and Bordeaux with three daily flights.

Air France aims to better seize connecting opportunities to the rest of the world and maintain capacity adapted to variations in demand between winter and summer: for example, one daily frequency is being suspended to Munich (Germany), Bucharest (Romania), Moscow (Russia), Rome (Italy) and Bremen (Germany).

On departure from Paris-Orly and the French provinces: capacity down by -11.3%
This winter, point-to-point short and medium-haul capacity (Air France, HOP!) is down by -11.3%. Seasonal adjustments are more pronounced, with the aim to return to operational breakeven by 2017.

On departure from Paris-Orly, Air France suspends one daily flight to Bordeaux and two daily frequencies to Toulouse. From the provinces, structural adjustments continue, notably with the suspension of several destinations in Europe and North Africa on departure from Toulouse and Marseille.

HOP! capacity is slightly up in France and to major European cities on departure from the French provinces. With its 26 destinations, Lyon is the Company’s main base, giving customers from the French regions access to a vast network of connecting flights.

Low-cost leisure operations

Transavia: strong increase in capacity of +13.3%

Transavia France, a low-cost subsidiary of the Air France-KLM Group, will continue to develop as outlined in the Transform 2015 plan. During the 2014-15 winter season, Transavia France will operate nine new routes launched this year on departure from Paris-Orly – Istanbul, Tel Aviv, Budapest, Madrid, Malaga, Barcelona, Athens, Pisa and Prague. On departure from Lyon, Transavia will also inaugurate a service to Tel Aviv as from October 2014.

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. As previously reported, Air France is bringing the Airbus A380 to Miami this winter. A380-861 F-HPJI (msn 115) taxies at the Paris (CDG) hub with the special 80 And (Years) markings.

Air France: AG Slide Show

KLM: AG Slide Show

Air France Aircraft Slide Show:

Ryanair’s CEO Michael O’Leary proposes to feed airlines like Lufthansa and Air France-KLM

Ryanair - Michael O'Leary (MF)

Ryanair‘s (Dublin) CEO Michael O’Leary never avoids any kind of publicity, good or bad. He is expert in garnering attention grabbing headlines with his proposals and often controversial statements.

In this interview with the Irish Independent, the flamboyant CEO says his ultra low-fare carrier could feed the big European carries like Lufthansa and Air France-KLM as they concentrate on competing against the Big Three of the Gulf (i.e. Emirates, Etihad and Qatar) for the discerning long-haul passengers. The on-going pilot’s strike against Air France reinforces his view that the current in-house feeder model is broken.

All three carriers are reportedly losing money on their intra-European feeder routes. Ryanair to the rescue?

Read the full article: CLICK HERE

Copyright Photo: Marco Finelli/AirlinersGallery.com.

Ryanair: AG Slide Show

Air France-KLM revise their earnings forecast, stock declines over 5%

Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Amsterdam) has issued a profit warning, lowering it profit forecast from 2.5 billion euros to around 2.25 billion. The stock tumbled over 5 percent.

The Group issued this statement in their June traffic numbers:

“While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields. This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the First Quarter.

These factors lead us to revise our EBITDA target for Full Year 2014 from around 2.5 billion euros to between 2.2 and 2.3 billion euros, a rise of over 20% compared with 2013.

Strong capital disciple will enable us to remain on track in terms of debt reduction and we confirm our objective of 4.5 billion euros in net debt in 2015.”

Read the analysis on City Index: CLICK HERE

Top Copyright Photo: TMK Photography/AirlinersGallery.com. Air France’s Boeing 747-428 F-GITJ (msn 32871) climbs into the clear skies after departing from Toronto (Pearson) bound for Paris (CDG).
Air France: AG Slide Show
KLM: AG Slide Show
Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 747-406 PH-BFL (msn 25356) of KLM completes its final approach to the runway at JFK International Airport in New York.