Julian Moxon/PARIS
AIR INTER EUROPE is to close 18 loss-making routes in the third quarter of 1996 as part of money-saving measures as the carrier prepares for liberalisation in April 1997.
The airline's moves towards competitiveness are threatened, however, by its pilots, who have until 30 June to respond to an ultimatum set by Air France president, Christian Blanc, calling for productivity improvements. "Failure to agree on that will leave us unable to create the future European airline of the Air France Group," he says.
Together, the closure of the routes is expected to save Air Inter Europe some Fr350 million ($67.8 million) annually. It announced net losses of Fr661.4 million between 1 January, 1995, and 31 March, 1996, for a turnover of Fr13.6 billion. Operating losses increased, to Fr549 million.
The list, which was revealed on 26 June by Blanc, includes six routes serving London, seven to Spain, two to Portugal and three domestic routes. The airline admits that competition from the TGV high-speed train is partly responsible, but it is clear that it is also aiming to use the freed slots to increase its competitiveness against the ever-stronger independents such as Air Libert, and AOM .
Air Inter Europe (which will eventually become Air France Europe) wants to reinforce its "shuttle" service between Paris/ Orly and Toulouse, Marseilles and Nice, which together account for 33% of its Orly business.
nAir France is to complete its original order for Airbus A340-300s by taking five high gross-weight A340-300Es.
It will sell three A340-200s as part of its fleet-rationalisation proposals, under which its entire A340 fleet will be made up of -300 versions.
See Air Transport, P14.
Source: Flight International