Air France takes cue from low-cost operators and cuts fares
Ziarul Financiar
16.11.2009
Airline operator Air France-KLM, which operates five daily
flights on the Bucharest-Paris route and three flights on the
Bucharest-Amsterdam route, will cut 20% off business class ticket
fares starting in April 2010. "Almost 60% of the passengers are
business travellers, while the rest are holidaymakers. With the new
fares that we are introducing next year on all routes, we are
trying to win back clients, as well as target potential clients in
small and medium-sized enterprises, who tend to travel low-cost,"
said Erik Varwijk, deputy general manager of Air France-KLM, who
added that the new business model entailed lower fares on all
aeroplane tickets. He added Air France-KLM was "fighting" both
low-cost airlines, and high-speed trains in European countries,
with competition being very strong.
"The entire air transportation
market is on a decline. The 10-15% revenue decline as a result of
price cuts is in line with the general trend of the market. Next
year we will come with 20% lower prices on average, both for the
business class and for the economy class," specified Varwijk,
adding that the new price policy would apply to all European
routes, including those operated in Romania. The business model of
low-cost carriers, which generates traffic rises even in a year of
crisis, has been increasingly used by large traditional airlines.
Amid a decline in the number of passengers carried, companies such
as British Airways, Air France-KLM, as well as Romanian national
carrier Tarom found themselves having to draw from the price policy
of low-cost operators.