Bloomberg News: Air France-KLM Considering New Low-Cost Operation

Posted: March 26, 2012 in Airlines
Tags: , , ,

Air France-KLM Group, Europe’s biggest airline, may start a new low-cost service as the carrier seeks ways to stem losses, according to a person familiar with the matter.

Two possibilities are being considered, said the person, who asked not to be identified because the discussions are private. One would see the development of Transavia, a Dutch subsidiary which has low-cost and charter services. The other would involve the creation of a new service under a new brand alongside Air France for flights shorter than two hours, the person said.

Workers unveil the new Air France logo on a Boeing 777-300

Air France could set up its own low-cost airline.

“No option is excluded in the framework of our transformation plan,” Jean-Charles Trehan, head of Air France- KLM’s press office, said by phone. “Regarding the restructuring of our long- and medium-hauls, different options are being examined. A dedicated working group will release its conclusions in the coming weeks.”

Air France-KLM reported a net loss of 809 million euros ($1.08 billion) for 2011 and is struggling with……..

By Mathieu Rosemain on March 26, 2012

Full story from Business Week & Bloomberg News here….

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