Tag Archives: Air France

Air France and KLM are holding in-depth discussions with their respective governments and financial institutions

Air France-KLM has made this announcement:

From the start of the COVID-19 crisis, the Group has implemented adequate measures to protect its passengers and staff, as well as to preserve its financial sustainability.
In view of increasingly strict measures taken by many countries, including restrictions on travel opportunities or border closures, the Air France-KLM Group has drastically reduced its flight activity, which over the next few months should be less than 10% of last year’s level.

The Group has implemented strong measures since the beginning of the crisis which include, amongst others:

  • –  Negotiation with governments of payment deferral for taxes (civil aviation, solidarity…), social contribution and various charges;
  • –  Negotiation with lessors and airports of payment deferral;
  • –  Cost reduction measures, estimated at this stage at €500 million in 2020, an increase

    of €300 million compared to previous announcements ;

  • –  The possibility of early retirement of certain sub-fleets of aircraft;
  • –  Implementation by Air France of partial activity measures and application by KLM for

    the ‘Temporary Emergency Bridging Measure for Sustained Employment’ (NOW), with

    an impact estimated at this stage at around €1.1 billion for 2020;

  • –  Review of the investment plan to reduce the capital expenditure plan by €700 million in 2020, an increase of €350 million compared to previous announcements, to which will be added the impact of the decline in own and third-party activity on the amount

    of maintenance investments.

In solidarity with the all employee groups, the Air France-KLM Board members, Chair and CEO will also participate in the effort in line with the measures applicable to the employees of the Group, with a similar reduction of their remuneration.

As the crisis continues, the conditions for a recovery remain uncertain, both in terms of our air operations, but more generally in terms of the timetable for economic and demand recovery.

Our current best estimates, incorporating the above-mentioned measures, show that in the absence of additional financing, a liquidity requirement is expected in the third quarter of 2020.

As a result, the Air France-KLM Group, Air France and KLM, have entered into in-depth discussions with their respective governments and financial institutions in order to grant the resources that will enable them to secure and sustain adequate levels of liquidity by all means, notably within the framework of the European Commission’s Temporary Framework on State Aid in force published on March 19, 2020.

At this stage, given the various options currently being considered and the quality of the discussions with the two States and financial institutions, the Air France-KLM Group is confident that it will be able to obtain additional financing to meet all its future financial obligations and enable it to ensure the recovery of its activity beyond the current crisis.

“We are facing an unprecedented crisis affecting without exception the airline industry, which is causing a great deal of uncertainty about the outlook for air transport,” said Benjamin Smith, Chief Executive Officer of Air France-KLM. “Since the beginning of this crisis, the Air France-KLM Group has done everything possible to ensure the health safety of its employees and customers and, on the financial side, to preserve its short-term liquidity and prepare for the future. Emergency measures have been rapidly implemented to reduce our costs and investments. I salute the exceptional commitment of our employees, who are giving their best in these difficult times, particularly the operational teams who are enabling the repatriation flights of our fellow citizens, as well as the transport of medical equipment to France and the Netherlands. It is now clearer than ever that support from our both Dutch and French governments is needed to meet our cash requirements and enable us to continue our operations once the crisis is over. Discussions with them and financial partners are ongoing, and I am confident in their willingness to support us and the future of the Air France-KLM Group, a key player for employment and the greater economies of our two nations, whose flags our airlines fly around the world. “

In other news, Air France has been flying medical supplies in France:

Our Air France Cargo teams are involved in the delivery of 100 tons of medical equipment in France, including several million masks. Thank you to all those who remain mobilized since the beginning of this health crisis.

Air France aircraft photo gallery:

Air France-KLM takes exceptional measures due to coronavirus, grounds A380s and 747-400s

Air France-KLM have released this message:

The COVID-19 crisis has continued to spread in recent days, leading many countries to take increasingly stringent measures in an attempt to slow the rate of spread of the epidemic. Some countries have imposed constraints on the movement of travellers from France, the Netherlands or more broadly from Europe. In France, the transition to a level 3 public health emergency requires the closure of all non-essential services since last weekend.

Faced with these growing restrictions on the possibility of travelling and a strong downward trend in demand which has resulted in a drop in traffic and sales over the last few weeks, the Air France-KLM Group is obliged to gradually reduce its flight activity very significantly over the next few days, with the number of available seat kilometers (ASK) potentially decreasing between -70% and -90%.

This reduction in capacity is currently scheduled to last two months, and the Group will continue to monitor the evolution of the situation on a daily basis andadjust it if necessary.

Photo: Airbus and Air France.

As a result of this reduction in capacity, Air France will ground its entire Airbus A380 fleet and KLM its entire Boeing 747-400 fleet.

To deal with this situation, the Group has already taken a number of strong measures to secure its cash flow:

  •   Additional savings measures have been identified, which will generate €200 million in 2020
  •   An initial review of the investment plan has reduced the capital expenditure plan by €350 million, to

    which will be added the impact of the decline in activity on the amount of maintenance investments

  •   Air France and KLM will be consulting with their elected employee representativeson measures to take into account the impact of the expected decline in activity, including a project to implement partial activity
  •   Last week, the Air France-KLM Group drew a revolving credit facility for a total amount of €1.1 billion and KLM drew a revolving credit facility for a total amount of €665 million. As of March 12, the Group and its subsidiaries had more than €6 billion in cash and cash equivalents

    In spite of the measures taken, the deterioration of the environment linked to the epidemic and the sharp reduction in its activity that has resulted today lead the group to forecast a sharply deteriorated financial trajectory compared to the outlook presented at the publication of its annual results. Indeed, the Group estimates that the drop in revenues from the Passenger business resulting from the reduction in capacity will only be offset by around 50% by the drop in variable costs before cost savings measures.

    In this extremely difficult context, the Air France-KLM Group has welcomed the statements made by the French and Dutch governments, which have each indicated that they were studying all possible means to support the Group.

Air France aircraft photo gallery:

Air France adjusts its schedule to the United States

Air France has made this announcement:

Air France has taken note of the US Department of Homeland Security (DHS)’s announcement of new United States border restrictions as of 14 March 2020.

Flights to and from the United States are operating as normal on March 12 and 13, 2020.

From March 14 to 28, 2020 included, Air France plans to continue operations to Atlanta, Chicago, Detroit, Los Angeles, New York JFK, San Francisco and Washington.

At this stage, Air France is awaiting clarification from the US authorities on the possibility to continue service to Miami, Boston and Houston.

Air France is working with its partners KLM, Delta Air Lines and Virgin Atlantic on implementing a plan to continue service to the United States for its customers beyond March 28, 2020.

Air France aircraft photo gallery:

 

Air France-KLM reports 2019 results, warns of impact of coronavirus

Air France-KLM issued this financial report for 2019:

  •   Revenue growth for all businesses, with strong performance from Transavia and Maintenance
  •   Unit cost at constant currency and fuel reduced by -0.9%, at the better end of guidance range
  •   Operating result at 1,141 million euros, down 264 million euros compared to last year1
  •   Net income at 290 million euros
  •   Net debt/EBITDA ratio at 1.5x, in line with guidance
  •   Record levels of customer satisfaction for Air France and steady-state high level for KLM
  •   Leading airline group on sustainability in the Dow Jones Sustainability Index

    OUTLOOK
    Business trends
    After a good performance for the Passenger Network activity with positive unit revenue in January 2020, recent developments with regards to the Covid-19 have impacted the demand outlook, especially in the Asian network. This translates in long-haul forward booking load factors down from February to May 2020. As a consequence the Group anticipates unit revenues at constant currency to be down for the first quarter of 2020.

    The Cargo activity is also impacted by Covid-19, foreseen to maintain pressure on the load factor and yield in the first part of 2020.

    Based on the Group announcement regarding Covid-19 (suspension of China operations in February- March and possible resumption of operations starting from April 2020), the high-level estimated impact on operating result is of between -150 and -200 million euros for February to April 2020.

    Full year 2020 guidance

  •   Unit cost reduction of between -1% and 0% at constant currency and fuel price
  •   The Group plans capital expenditures of 3.6 billion euros for 2020
  •   Net debt/ EBITDA ratio of circa 1.5x

    The 2020 fuel bill is expected to decrease by 300 million euros compared to 2019 to 5.2 billion euros, based on the forward curve of 14 February 2020

    The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 19 February 2020 to approve the financial statements for the Full year 2019.

    “In 2019, the Air France-KLM Group posted an operating result at 1,141 million euros with a fuel bill hit and pressure on Cargo unit revenues” said Benjamin Smith, CEO of the Air France-KLM Group. Over the year we reinforced our foundations to build a European champion, notably through fleet optimization and restored trust that led to social stability and positive labour agreements at Air France and new CLA agreements at KLM. I am also proud that our Group was again at the top of the DJSI ranking and is recognized as an experienced and knowledgeable environmental leader in the industry. In November, we outlined our strategic plan with a substantial further step-up in financial performance foreseen, and we begin on this 5-year trajectory with a robust financial structure and strong unique assets.”

    2018 and 2019 results restated (with a similar impact in both years) for limited life parts componentization accounting change. See notes in the consolidated financial statements paragraph 2, page 12-15 and page 9-10 of this press release.

    1 The Air France strike had a -335 million euros impact on the Full year 2018 operating result
    2 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency

FULL YEAR 2019
Operating result at 1,141 million euros, unit cost at -0.9%, pressure on Cargo unit revenue and a higher fuel bill

Air France Group to launch 17 routes to Algeria

Air France Group issued this statement:

  • 5 new routes to 2 destinations for Air France on departure from Paris Orly, Marseille, Toulouse and Nice
  • 12 new routes to 6 destinations for Transavia on departure from Paris Orly, Lyon and Montpellier

The Air France Group is increasing services to Algeria along with capacity to Algiers, Bejaia, Constantine, Oran, Setif and Tlemcen on departure from Paris and the French regions.

These flights, which will be operated by Air France and Transavia as from April 2020, will create even stronger ties between France and Algeria.

Air France – up to 31 new weekly flights to Algeria 

Air France will launch 5 new routes to Algiers and Oran –

–           Paris Orly-Algiers: up to 14 weekly flights all year-round as from 4 April 2020
–           Marseille-Algiers: up to 7 weekly flights all year-round as from 4 April 2020
–           Toulouse-Algiers: up to 4 weekly flights all year-round as from 4 April 2020
–           Toulouse-Oran: up to 4 weekly flights all year-round as from 4 April 2020
–           Nice-Algiers: up to 2 weekly flights from 14 July to 27 August 2020

Moreover, the seat capacity between Paris and Algiers will be doubled with a total of 49 weekly flights departing from Paris-Charles de Gaulle and Paris-Orly, opening up access to Air France’s vast medium and long-haul network.

The flights will be operated by Airbus A318 and A320 equipped with 131 and 178 seats respectively. These flights can be booked as from 24 February 2020 at airfrance.com, by calling 3654 and with travel agents.

Transavia – 445,000 seats between France and Algeria in summer 2020

For the 2020 summer season, Transvia will also launch 12 routes to 6 destinations –

–           Paris Orly-Algiers: 14 weekly flights as from 4 April 2020
–           Paris Orly-Bejaia: 3 weekly flights (Monday, Wednesday, Friday) as from 4 April 2020
–           Paris Orly-Constantine: 3 weekly flights (Tuesday, Thursday, Sunday) as from 4 April 2020
–           Paris Orly-Oran: 6 weekly flights (Monday to Saturday) as from 4 April 2020
–           Paris Orly-Setif: 2 weekly flights (Tuesday, Friday) as from 4 April 2020
–           Paris Orly-Tlemcen: 2 weekly flights (Wednesday, Saturday) as from 11 April 2020
–           Lyon-Bejaia: 1 weekly flight (Wednesday) as from 22 April 2020
–           Lyon-Constantine: 1 weekly flight (Sunday) as from 26 April 2020
–           Lyon-Oran: 2 weekly flights (Tuesday, Saturday) as from 21 April 2020
–           Montpellier-Algiers: 2 weekly flights (Wednesday, Saturday) as from 8 July 2020
–           Montpellier-Constantine: 2 weekly flights (Tuesday, Saturday) as from 11 July 2020
–           Montpellier-Oran: 2 weekly flights (Monday, Friday) as from 6 July 2020

Transavia will also triple its frequencies between Lyon and Algiers, with 6 weekly flights.

This offer is in addition to the flights operated since 2019 on departure from Nantes to Algiers and Oran. In total, Transavia will offer 445,000 seats between France and Algeria in summer 2020.

Flights will be operated by Boeing 737-800 equipped with 189 seats.

This flight schedule and associated rights are subject to approval by the Algerian civil aviation authority.

Air France aircraft photo gallery:

Air France welcomes the 350th Airbus A350 delivered by Airbus and unveils its summer destinations

First A350-900, delivered on September 27, 2019

Air France made this announcement:

In a nod to the history of the French aviation industry, the 350th Airbus A350 will fly in the Air France colors.

The aircraft on February 4 left the aircraft manufacturer’s assembly line in Toulouse and will shortly begin flying to Bamako and Abidjan.

In returning to its tradition of naming its aircraft, Air France has called it Nice, in tribute to the iconic city on the French Riviera and gateway to the Mediterranean.

Nice joins the A350s already delivered to the company – Toulouse, Lyon and St. Denis de la Réunion.

By 2025, Air France will take delivery of 38 Airbus A350s, the new jewel in its long-haul fleet.

6 destinations to discover by Airbus A350

For the 2020 summer season*, Air France will serve 6 long-haul destinations by Airbus A350 on departure from Paris-Charles de Gaulle – Abidjan (Côte d’Ivoire), Bamako (Mali), Bangkok (Thailand), Atlanta, Boston, Washington (USA).

  • Bamako – Abidjan: 1 daily flight
  • Bangkok: 3 weekly flights (outbound flight on Monday, Wednesday and Saturday; return on Tuesday, Thursday and Sunday)
  • Atlanta: 1 daily flight
  • Boston: 1 daily flight until 4 May and subsequently 2 daily flights
  • Washington: 1 daily flight as from 5 June 2020

*2020 summer season: from 29 March to 25 October 2020

A new definition of comfort

The Air France Airbus A350 has 324 seats, with 34 in the Business cabin, 24 in the Premium Economy cabin and 266 in the Economy cabin.

On board, customers enjoy:

  • a spacious and quiet cabin,
  • windows that are 30% larger,
  • an optimized air pressure system providing a more comfortable cabin atmosphere with regularly renewed cabin air,
  • lighting adapted to the different flight phases.

In Business, the seat turns into a real 2 metre-long lie-flat bed, guaranteeing restful sleep. In Premium Economy, the brand new “Recliner” seat is 48cm wide and reclines to 124°. In Economy, the seat has been redesigned for even more comfort, with a reinforced ergonomic seat cushion, a 118° seat recline, as well as a 79-cm seat pitch. Each cabin features large individual High Definition touch screens.

To stay connected on board the Airbus A350, customers have access to Air France CONNECT, the inflight Wi-Fi service, which offers 3 types of pass:

  • A free “Message” pass for all, to send and receive messages during the entire flight;
  • A “Surf” pass, costing between €3 and €18 (6,000 Miles), to surf the internet, consult and send emails;
  • A “Stream” pass, costing €30 (10,000 Miles), to enjoy high-speed internet access, streaming and downloading, including the “Message” and “Surf” passes.

Renewing the Air France fleet, a powerful way of reducing its environmental footprint

With the Airbus A350-900, Air France is accelerating the change towards more sustainable air transport, in line with its HORIZON 2030 commitments.

A latest-generation aircraft, the A350 consumes 25% less fuel (i.e. 2.5 litres per passenger per 100 kilometres) thanks to the use of 67% lighter materials: 53% composites and 14% titanium. Its noise footprint is also reduced by 40%.

Top Copyright Photo: Air France Airbus A350-941 F-HTYA (msn 331) TLS (Paul Bannwarth). Image: 947954.

Air France aircraft slide show:

Video:

Air France-KLM suspends all flights to China

The Air France-KLM Group continues to closely monitor the developments of the outbreak of the coronavirus in China, while maintaining close contact with international health and aviation authorities. After careful consideration of the developing situation, on January 30, 2020 the Air France-KLM Group decided to suspend all Air France and KLM flights to and from China until  February 9, 2020.

“The health and safety of our 85,000 employees and our 100 million customers is our highest priority,” said Benjamin Smith, CEO of the Air France KLM Group.  “I am proud of the professionalism of our employees in Europe, in China, and abroad, and their relentless dedication to ensuring their operating and non-operating colleagues, as well as our customers, can return home to their families. We continue to closely monitor the situation together with our partner China Eastern. ”

Starting Thursday, January 30, 2020 Air France will operate special flights to and from Shanghai and Beijing using volunteer crew members in order to permit employees and customers to return to Paris, while KLM’s flights departing from Amsterdam until Sunday, February 2, 2020 are intended to give as many employees and customers as possible the opportunity to return to Amsterdam from Beijing and Shanghai.