NEW ORGANISATION, NEW STRATEGY

Air France reveals a new, clearer organisation, and pursues more upmarket approach

Air France has begun implementing a new organisation, which the company says is clearer and better reflects its priorities. Its ambition is to clarify responsibilities and simplify the company’s operating methods.

Franck Terner, CEO of Air France, says he wants to move fast to implement new strategy: “We must move quickly, in line with the staff representative bodies. This new organisation will be oriented towards the priorities that I have set together with Jean-Marc Janaillac in order to return to profitable growth: put the customer at the heart of our operations, improve our operational performance and ensure flight safety, improve our in-house working methods through digital technology and simplify our processes, promote staff commitment with a real HR ambition and improve our competitiveness.”

As part of the reshuffle, on 1st January, Alain-Hervé Bernard was appointed Chief Operating Officer and Accountable Manager, replacing Eric Schramm. Alain Malka has been appointed EVP of HOP! Air France, replacing Lionel Guérin, and with the aim of recovering Air France’s point-to-point operations. Anne Rigail is the new EVP – Customer, regrouping the functions of customer and product prescription of the current Long and Medium- haul Business Units.

AIR FRANCE PURSUES ITS “MOVE UPMARKET” STRATEGY
On Air France’s long-haul routes, 36 Boeing 777 were equipped with new cabins and served 32 destinations this winter. In total, by August 2017, 44 Boeing 777 will be retrofitted. As of winter 2017, Air France will begin the move upmarket on its Airbus A330 for expected delivery in winter 2018. At the same time, the company is studying the refurbishment of its Airbus A380 with possible deployment starting in 2019.

On medium-haul routes, the move upmarket of the cabins is also continuing with 24 Airbus A320 modified by the end of October 2016. In November, Air France began modifications to its 11 Airbus A321’s.

ARRIVAL OF NEW BOEING 787
On 9th January 2017, Air France began operating the first commercial flight of a Boeing 787 between Paris-Charles de Gaulle and Cairo in Egypt. For Air France and its customers, the Boeing 787 will provide many important assets. The Business cabin has 30 seats, Premium Economy 21 seats and Economy 225 seats. Wi-Fi is standard on board, there’s more space and comfort with the new Premium Economy seats, and windows are about 30% larger than on similar aircraft.

AIR FRANCE’S NEW WEAPON IN THE LOW-COST MARKET – PROJECT “BOOST”
Air France-KLM’s CEO Jean-Marc Janaillac has presented a project of creating a new subsidiary next to Transavia. “Project Boost” will help maintain and grow Air France’s presence on long-haul routes and operate profitably on some routes that are currently making losses. According to the group CEO, the future carrier – whose codename is “Boost”- is expected to start operations in mid-2017 with a mixed fleet of a dozen aircraft on a future medium and long haul network.

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