DutchNews, November 3,
2016
Air
France.com via Wikimedia Commons
|
Air France – KLM is going to set up a new airline to compete with Gulf
state airlines as part of a nine-point plan to win back market share and turn
loss-making routes into profit centres.
The new initiative, dubbed Boost, is
the Air France – KLM ‘response to Gulf State airlines which are developing at
low production costs in key markets,’ the airlines said in a statement.
Based
at Charles de Gaulle airport, the new company will be ‘simple, modern and
innovative’ and will not be positioned as low cost, the statement said. ‘It
will offer its customers business and leisure destinations with standards
comparable to those of Air France in terms of product quality and the
professionalism of the crews.’
The planes will be staffed by Air France pilots
on a voluntary basis and talks with the unions on staffing arrangements will
begin soon.
The new strategy, named Trust Together, also aims to boost competitiveness,
improve links between the various airport hubs and set up lobbying activities
on competition issues.
Air France – KLM also said on Thursday it had booked net
profit of €544m in the third quarter of the year, up from €481 in the same period
last year. Revenue was almost €7bn, down €400m on a year ago.
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