AIR FRANCE AND THE BOOST PROJECT

FROM CHALLENGER TO LEADER ?

The company plans to reduce its costs by -1.5% and achieve growth of 2 to 3% per year.

Announced in November a strategic plan to regain market share in transport, “Trust Together” provides for the creation of a medium/long-haul hybrid company.

Because Air France has never made the slightest net profit! but it somehow saved market share in short-haul against the aggressiveness of the low cost.

The goal is therefore with the creation of this newcomer the fight against competitors from the Gulf.

The most striking solution is of course the creation of this "lower cost therefore lower fare" company in the reconquest of the market on the medium-haul and especially the Asian long-haul, devoured by the Gulf companies.

There was already Air France, its subsidiary Transavia devoted to low-cost flights, or even Hop.

The Boost project is designed according to the Transavia France scheme : Air France pilots seconded from Air France on a voluntary basis and a Cabin Crew Member recruited by an external entity in terms of productivity, a fleet of ten aircraft equipped in two-class partially bearing the Air France brand, and test innovations such as berths in the hold, for example.

A new medium-haul price list must be put in place.

The leased fleet will drop by 40 to 20% as a cost saving measure.

"Digitalization" will be extended.

In 2020, the profile of the group would result in 28 billion euros in turnover for 100 million passengers and a fleet, excluding regional aircraft, of 435 aircraft.

Planned launch date: summer 2017 for medium-haul destinations and summer 2018 for long-haul routes.