Something about this doesn't make sense. First of all, the AF/KL 'merger' was a marriage made in hell. The Dutch generally loathe the French, and with good reason, and the approach to problem solving by the two nationalities could hardly be more different. I had plenty of experience working with both nationalities and airlines around the time of the merger.
The Dutch look at problems, find solutions, and move forward positively.
The French look for problems, amplify them, bitch and moan to management, go on strike, and want to move back to the old days of doing things 'parce que cela a toujours ete comme ca'.
Air France, once in the air, is a good airline, its Achilles' heel being ground services particularly at its main hub, and it is hampered by strikes, unions, and the bad attitude of its staff and management. KLM is a better airline in almost every way, with AMS being possibly the second best European hub (after ZRH) and one of the best in the world.
They say that ground handling for this 'new airline' will be by AF and it will be based at CDG, either of those factors, let alone both, will kill it dead in the water,. Anyone who's ever stood at an AF ticket desk for a re-routing or any type of flight interruption will know that the French equivalent of 'computer says no', enhanced by the French sullen pout and shrugging, is enough to put you off the the airline for life. Some of its staff make Aeroflot look good in terms of customer service.
Both have significant long haul networks serving major business and leisure destinations. They say this isn't going to be a low-cost carrier, and if it is to be integrated with existing networks, they will need to offer seamless connectivity and combinable through fares, so what exactly are they going to do to position themselves competitively in the market? They're talking about doing this to compete with the ME3, and the main way they can see off that competition is with lower fares. and yet they say they won't be an LCC.
Quo vadis?
Air France to set up separate low-cost long-haul unit
03 November, 2016 BY: Michael Gubisch London
Air France-KLM has confirmed it is planning to set up a low-cost long-haul unit to operate flights from Paris Charles de Gaulle as part of its "Trust Together" efficiency initiative.
Chief executive Jean-Marc Janaillac said during a results briefing today that the new subsidiary would have at least 10 widebodies by 2020.
Internally dubbed "Boost", the project is aimed at serving "ultra-competitive markets" as a "response to the Gulf state airlines", he notes.
The objectives are to reopen routes that have been terminated as a result of lack of profitability, and to maintain routes that are under threat. However, 30% of operations are set to comprise newly added routes.
Pilots are to be recruited on a voluntary basis from Air France to work on "conditions adapted to its [the new airline's] competitive positioning", says Air France-KLM.
The group's outgoing finance chief Pierre-Francois Riolacci does not foresee any shortage of Air France pilots willing to transfer to the unit. He argues that the situation will be similar to the build-up of budget short-haul unit Transavia in recent years, for which the group found sufficient pilot volunteers within Air France.
However, flight attendants will be recruited externally, the group indicates: "An independent career path will be created to enable this new company to be operated at the level of market costs."
Ground operations will be handled by Air France.
Despite the cost-cutting efforts, Janaillac insists the product "will not be low-cost". Instead, the new unit is to represent a "simple, modern and innovative offer" on business and leisure routes "with standards comparable to those of Air France in terms of product quality and the professionalism of the crews".
Management has held initial talks with staff representatives, with detailed negotiations to be held over the coming weeks.
"There was no rejection at all of this project," says Janaillac about the initial talks: "The reaction was not negative, I wouldn't say it's positive – it's a French union. It would be, I think, a bit worrying if it is positive... But there was a feeling we have to work together."