法荷航对远程低成本航空的看法（英文版）.pdf

Share your thoughts #CAPASumit 10-1 October, 2019 Air France-KLMs view on Long-Haul Low-Cost Angus Clarke EVP Strategy Air France-KLM Group Share your thoughts #CAPASumit 10-1 October, 2019 Clear diferences in busines model betwen ful service-and long-haul low-cost cariers Hub-and- spoke strengthened by aliances vs. multi-base point-to-point Diversified flet vs. densified single aircraft type Multiple (premium) cabins vs.focus on economy clas Multi-segment fares vs.one- way fares Corporate/VFR vs.leisure Product Pricing Clients NetworkFlet Multi-base Diversified labour base providing flexibility, lower labour costs, and tax optimization Share your thoughts #CAPASumit 10-1 October, 2019 LHLC benefit from a lower cost base compared to ful service cariers 3 Net w o r k C a r i e r LC C Medium Haul -50% but the unit cost gap is significantly lower on long- haul compared to medium-haul Net w o r k C a r i e r LH L C Long haul -25% driven by a diferent cost structure Share your thoughts #CAPASumit 10-1 October, 2019 LHLC are able to achieve cost advantages through cabin densification and cheaper labour costs 4 Overhead, catering, handling charges Share your thoughts #CAPASumit 10-1 October, 2019 Profits are driven by premium trafic which LHLC are not able to atract 5 92% 65% 8% 35% Trafic Revenue Premium Economy Premium trafic share is much smaler than its revenue share Source: IATA DDS (EUR to Long-Haul v.v. 2018) Lack of feding network Lack of premium cabin and LHLC dont have the right asets in place to attract this trafic Share your thoughts #CAPASumit 10-1 October, 2019 Flet optimization and LOPAs are key drivers for revenue maximization and unit cost reduction 6 The answer to LHLC on price-sensitive markets Air France Boeing 77-300 COI (468 seats) Air France Boeing 77-300 (296 seats) French Be A350-900 (411 seats) LEVEL A30-200 (314 seats) Large share of premium seats enables atraction of premium trafic Highly densified aircraft with 10-abreast reduces unit costs Non-optimized LOPA with only 8-abreast Source: SeatGuru Share your thoughts #CAPASumit 10-1 October, 2019 LHLC network oportunities are limited due to lack of feding and market presence 7 0%1%2%3%4%5%6%7%8%9% 0.6M 0.4M 1.5M 0.0M 1.3M 0.1M 0.2M 0.3M 1.0M 0.8M 0.5M 0.9M 1.4M 0.7M 1.6M 1.1M 1.7M 1.2M La Runion Fort De France Montreal Los Angeles Sao Paulo Tokyo Bangkok Punta Cana Dubai Singapore Dakar Trafic share out of top 10 destinations Bostn San Francisco Beijing Abidjan Delhi Washington New York Seoul Hong Kong Toronto Cayene Mexico City Havna Chi go Ho Chi Minh City Bamk Cancun Taipei Mauritius Miami Lo c a l m a r k et s i z e Pointe A Pitre Shanghai Rio De Jaeiro There are few destinations with a large local market out of Paris Top 10 represent 40% of trafic LevelCorsairDelta Frenchbe La Compagnie American Norwegian Japan Airlines United Tokyo Air FranceParis DeltaNorwegianUnitedAmericanVirginBritish AirwaysLondon Delta United United Singapore Airlines Lufthansa Frankfurt All Nipon A big market like Paris-New York attracts many competitors Source: IATA DDS (Paris to Long-Haul v.v. 2018), OAG Share your thoughts #CAPASumit 10-1 October, 2019 A strong hub with conections is important to reduce unit costs and atract premium trafic 8 49% 51% Local 25K Frenchbee 47K Air France United NorwegianXL Airways Connecting 180K 83K 10K Source: DDS June2018 to May 2019 Paris-San Francisco trafic mix per airline Air France market share is strong on local market, albeit with low-cost competition The 50% connecting trafic alows Air France to: Increase gauge and therefore reduce unit costs Increase frequencies to improve commercial offer Share your thoughts #CAPASumit 10-1 October, 2019 Conections also enable handling variation throughout the year 9 Seasonality Type of demand Share your thoughts #CAPASumit 10-1 October, 2019 Focus on a sustainable home market is important to succeed 10 Centered on Canada and operating leisure routes with low aircraft ownership costs Leveraging its market strength in Australia to operate long-haul routes Source: OAG 2019 Share your thoughts #CAPASumit 10-1 October, 2019 Track record of LHLC is not positive 11 Bankrupt Loss-making Hybrid or smal