Transavia France CEO Lionel Guerin is satisfied with the
airline’s initial performance and is aiming to reach breakeven within three
years, once the airline’s fleet reaches eight aircraft.
France-KLM Group’s new French medium-haul leisure carrier, which is based on KLM’s Dutch subsidiary Transavia, began operations on 12 May. Today it operates
four Boeing 737-800s and nine French leisure routes.
to ATI during the World Air Transport Forum in Cannes, Guerin said Transavia
has now reached the point where its business model can function properly.
August Paris Orly-based Transavia France
posted a load factor of 77%, which Guerin says exceeded expectations by two
points. He adds that unit revenues and costs are on budget.
objective is to have the best costs per seat kilometre,” says Guerin. “This
year we are at around 5.7c per seat kilometre. Next year we want to have around
4.7c, which is very low.”
Transavia France is 60% Air
France-owned, with the remainder belonging to Transavia
in the Netherlands.
Guerin says the airline’s relationship with Air France-KLM is working well and
has been a big boost to the start-up’s establishment, delivering more cost
savings and synergies than initially expected.
says: “I am very happy because there are very good synergies with Air
France-KLM, in areas such as fuel and maintenance.”
year, in March 2008, Transavia France
will take delivery of three new Boeing 737-800s, increasing the fleet to seven.
A further one to two aircraft are slated to arrive in 2009, taking it beyond
eight aircraft, which Guerin says will enable the carrier to achieve breakeven.
is expecting to carry 600,000 passengers and generate €69 million ($98 million)
in revenues during the current financial year which ends in March.
the 2008-09 financial year it
is forecasting over 1 million passengers and €120 million in revenues. In
2009-10 it plans to reach breakeven with 1.5-2 million passengers and around
€180 million in revenues.
Guerin would like to see more balance in the airline’s customer base. He says Transavia France has the same
strategy as Monarch Airlines in the UK or Air Berlin in Germany.
Around 70% of its passengers buy their flights directly, while the remainder
comes from travel agency and tour operator clients.
says: “The target is 50:50, like in Holland.
A new airline has to show the quality of its service. We are not the leader, we
are the outsider and we have to grow.”
remains silent on whether there are plans to establish other Transavia airlines in Europe, saying only: “I think the best model
is when you can duplicate the business model in other countries.”
winter Transavia France is adding new services to
Krakow in Poland, Fez, Essaouira and Ouarzazate
in Morocco, Tozeur
in Tunisia, Grenada and Andalucia
in Spain and the Egyptian cities of Hurghada