According to Ben Smith, the CEO of Air France-KLM, Transavia France’s entry into the French domestic market is integral to Air France-KLM’s strategy to rationalise its short-haul network and improve profitability following the impact of COVID-19.
Speaking during the Routes Reconnected online conference on Monday 30 November Smith said that the group expects its domestic operations in France to return to the black in the near future, reversing a loss of around €200 million.
“Transavia has a very similar construction to easyJet. And with the combination of Flying Blue – the Air France-KLM frequent flyer loyalty programme – it’s a very powerful combination,” Smith said. “We expect that in the short-term we should be able to turn domestic plans for flying back into profitable territory.”
Transavia France launched its inaugural domestic routes at the beginning of November. The low-cost carrier is taking over most routes operated by Air France and its regional subsidiary HOP! from Paris Orly serving regional hubs including Biarritz, Nantes and Montpellier. Air France and HOP! meanwhile, will continue to serve domestic routes from Paris Charles de Gaulle Airport.
Once Transavia France is operating profitably, the LCC will look to expand its network from secondary domestic markets in France to European destinations. Smith also underlined that more aircraft will be needed with both the Boeing 737 MAX and Airbus A320neo being considered.
