Air France Reportedly Considering Launch Of Low-Cost Carrier - Business Travel News

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Air France Reportedly Considering Launch Of Low-Cost Carrier

September 03, 2010 - 12:35 PM ET

By Amon Cohen

Air France refused to comment Friday on this week's report that it is considering launching a low-cost subsidiary to be called Air France Express, most likely next year.

According to the French news service AFP, citing unnamed company sources, the budget carrier would operate from bases in three southern French cities: Marseille, Nice and Toulouse. All three are predominantly leisure destinations but have a steady flow of business traffic.

Air France has successfully kept low-cost carriers out of its hub at Paris-Charles de Gaulle Airport, but budget rivals dominate the southern French cities, with EasyJet especially strong at Nice. The report claimed that the French flag-carrier is in discussion with unions about Air France Express.

KLM, the sister carrier of Air France, has its own low-cost subsidiary, Transavia, which is based at Amsterdam Airport Schiphol, but operates to around two dozen destinations from Paris' second airport, Orly. However, all the Orly services are to overwhelmingly leisure-oriented destinations.

Low-cost subsidiaries of mainstream airlines have a checkered history on both sides of the Atlantic. In Europe, British Airways sold its budget operation Go to EasyJet in 2002. Lufthansa owns the German budget airline Germanwings and announced earlier this week that the two would start interlining fares, with Lufthansa also giving Germanwings passengers frequent-flyer program and lounge access.

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