In total Air France should save 700800 million euros

The return of the "premium" traffic and unit revenue recovery

To achieve its goal of a balanced operating income, excluding fuel cover, on the fiscal year 2010-2011, Air France-KLM has any need of his unit revenue, which is the return of the "premium" customer (first, business and eco full fare) whose part is aligned on the lowest fares during the crisis. It is clearly the case for two months at the global level. Pulled by strong Asian growth and recovery in the United States, the number of international passengers travelling in first and business rebounded from 7.8 in the first quarter and by 10.8 in March, according to figures from the IATA (international air transport Association). The ash cloud has distorted the results in April, down 4, but should not undermine this trend for the resumption of traffic Affairs.

Even if Europe has remained somewhat in withdrawal of this recovery, its first effects are already sensitive unit recipe of Air France-KLM. Calculated on a basis 100, that of fiscal year 2007-2008, she returned to 91 in January 2010, when it was the lowest of 86 for the period April-June 2009. According to Pierre-Henri Gourgeon, Chief of the group, if it was 93 - hypothesis for the current year-, and the Group would be to balance given reductions of costs already incurred.

Latin America network is already clearly above passed early in the year and North America and Asia networks has came close in before the volcanic episode. However, the situation of the medium-haul European network remains of concern, with a "premium" still down traffic in the first quarter.

Cost reductions

Initiated as of summer 2008 the decrease of the supply, cost reductions should give full effect to the current year, including the plan of voluntary departures and Challenge 12 plan savings measures. In total, Air France should save 700-800 million euros. But other measures, such as the revision of the rules of compensation of seafarers, are also in preparation, whose effects will not be felt before 2011-2012. The first step - reduction of supply and workforce - is already sealed off. After having reduced its offer by about 5 since 2008, Air France-KLM should remain stable this year, before a possible return to growth in 2012.

The reduction of Air France is also acquired, even if of overmanning persist among pilots (400 or 10) and personal cabin (600, or 4). The objective of 1.684 quits registered here in the summer should be reached, or even slightly exceeded. These deleted items will be added to non-replaced natural departures, which already resulted in a decrease in the workforce of 4.4 in staff on the ground and 0.8 in commercial flight personnel. In the end, the numbers of Air France should pass of 54.700 in 2009 at 50.219 in 2012.

What's new in business

As in 2009, the A380 effect should continue to play in full in 2010, with arrival expected of a fourth aircraft in August, will help serve Tokyo, after New York and Johannesburg (and incidentally London, for the duration of training of the crews). Each A380 can save 12 to 15 million euros per year by replacing a Boeing 777 and an Airbus A330/340. In addition, the "super jumbo" continues to display record fill rates and a higher unit revenue by 5 points to those of the other long haul.

But the most important innovation in long-range over-water is the new class "premium Voyageur", intermediate between the business and economics, which should generate this year an additional revenue of EUR 120 million. Another major advantage: the development of the virtual joint venture with Delta is intended to generate 150 million of additional revenue. This transatlantic partnership will be further strengthened with the integration of Alitalia this summer, while a new joint-venture with China Southern should see the day this winter on Paris-Canton.

On the side of medium-haul, Air France expected the first benefits of the new Neo launched end of March and provided service for EUR 500 million over two years, of which 350 million this year. It should particularly be accompanied by a reduction of 20 of the costs of visits by 2012 and an equivalent increase of the productivity of the flight personal. However, the amendment of the conditions of use of the cabin staff involved in this new service has been extended until 2013, threats of strike.