STRATEGIC MOVES BY AIR FRANCE TO SUPPORT TOP FIVE AMBITION

ฺBangkok--Jan 19--Air France Air France announced two major initiatives to launch its plan to become one of the top five preferred airlines in Asia within three years – a complete overhaul of its Asian ground services starting March and the relocation of its regional office to Bangkok in June. Arthur Bullard, managing director, Air France Asia Pacific, explained: “In declaring that Air France will be one of Asia’s top five preferred airlines as we go into the new millennium, we have set an ambitious but achievable goal. Our first “Top 5” project focuses on ground services and is only the beginning of what we will do to achieve our target.” 1997 was the year Air France refined its services for Asian travellers, with more direct flights and greater capacity, added Asian in-flight interpreters and ground hostesses at Charles de Gaulle Airport in Paris, and the provision of local cuisine and on-board entertainment options. These enhancements followed significant technical improvements to in-flight physical comfort, such as l’Espace seats and Cabine Air Pur. However, research indicates time and again that the pre- and post-flight experience is as crucial to passenger satisfaction as in-flight service. Thus, after one year of planning, Air France is now overhauling ground services and facilities in areas such as reservations and ticketing, check-in, arrivals and baggage handling. “We believe service is in the details,” Mr. Bullard said. “Our innovation lies in implementing a whole range of ground service improvements at one time. And our success rests on our staff, led by 10 pan-Asia employee teams who have developed this ground service initiative from their front-line knowledge of passenger care.” Another dramatic move by Air France this year will be the relocation of its Asia Pacific head-office to Bangkok from Hong Kong. “Greater China continues to be an important market for us and we have a strong team in place. They have achieved significant results, building up our China routes and business. Now, it’s time for us to renew our emphasis on the development of Air France’s services to Southeast Asia,” added Mr Bullard. The relocation to Bangkok also reduces regional overheads, releasing funds for programmes that directly benefit passengers, such as the “Top 5” projects. In this regard, it follows cost-cutting initiatives by the Air France Group as a whole that saw an 18% unit cost reduction since the implementation of its recovery plan. “Air France is a revitalised company with aircraft features and in-flight service that are on par with the top airlines. We have a commitment to match this with quality ground services and uniformly high standards in every market we serve in Asia,” Mr. Bullard concluded. Mr. Bullard is optimistic about Air France’s chances of meeting its ambitious “top five” target. Only four years ago, the airline was on the brink of bankruptcy. In the first half of the IATA 1997/98 fiscal year (April to September), however, the Air France Group tripled consolidated net profit from the year-earlier figure of US$100 million – itself a reversal of years of loss – to US$300 million. Air France turnover contributed some 90% of the Group’s operations and showed 8% growth over the previous year. “In Asia Pacific, growth was even more dramatic with revenue up 29% based on a 26% increase in passenger traffic and an 11% rise in capacity,” Mr. Bullard said. Air France currently operates 15 routes from Asia to Paris. This includes non-stop service to/from 10 Asian cities: Bangkok, Bombay, Delhi, Hong Kong, Beijing, Seoul, Singapore and Tokyo; and Osaka and Nagoya in co-operation with Japan Airlines. And one-stop flights to/from Hanoi, Ho Chi Minh City, Jakarta, Manila and Noumea.--End.

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