Air France is declining to state whether it is considering a low-cost domestic operation, but points out that it is having to battle several competitive threats, particularly from high-speed rail.

The carrier is reportedly looking at establishing its own budget arm - the brand "Air France Express" has been suggested by French media - but this has not been formally confirmed.

Air France underscores, however, the multiple threats it faces within Europe, not just from major carriers but also from budget airlines such as EasyJet, which has its own base at Paris.

But the airline stresses that its "number one" issue is the high-speed rail operations that compete with domestic flights. Although it cannot confirm any strategy being discussed within the company, it is "always looking for ways to make it possible to reduce our costs".

The Air France-KLM Group already has a low-cost carrier in the form of Transavia, which also has its own French arm.

Air France's regional operations are conducted by carriers including Airlinair, Brit Air, CityJet and Regional.

Source: Flight International

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