Air-France KLM moves upmarket in new focus

Group has minimal capacity growth while moving upmarket

Air France-KLM is offering minimal capacity growth and moving upmarket in a bid to win back passengers, TTG Digital reports.

Following the long and damaging strike last month by its pilots, the group is now focusing on quality of product while capacity will grow 0.7% for the forthcoming winter season.

A growth of 3.1% will be seen in short and medium-haul capacity at the Charles de Gaulle and Schipol hubs. However, following the summer’s trend point-to-point short and medium-haul capacity will decrease by 11.3%.

Budget airline Transavia’s capacity will increase by 13.3% with growth of 56% concentrated on the French market.

But the focus on better-quality product means that on the long-haul network 22 Boeing 747s have been equipped with KLM’s new world business class, and on 777-200s by next summer. The new class will then be implemented on the airline’s 777-300s and by the end of 2016 about 80% of the KLM fleet is expected to be finished.

Air France is continuing to roll out its new best cabins with five Boeing 777s equipped by the end of 2014. Flights to New York, Singapore and Jakarta have already benefitted from the upgrade while services to a number of cities including Shanghai and Dubai will be added to the list over the forthcoming winter.

Air France has also added two new destinations, Miami and Abidjan, to the list of places it will be flying to with an A380 this winter.

“To win back all of our markets, we need to take action on two major complementary areas,” Alexandre de Juniac, chairman and chief executive of the Air France-KLM Group, said. “Firstly, we must continue the move upmarket of all our products and services, to return as soon as possible to the highest international level. Secondly, we must accelerate the development of our ‘low-cost leisure’ activity, with the strong growth of Transavia in France.”

TTG Digital

[pictured: Air France A380; courtesy Air France]

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