The Slovenia Times

Because we love flying so much, we want to pass it onto future generations

BusinessSpotlight

With sustainability issues on the rise, the air industry is facing more challenges than ever. But, in crisis, there is always a place for growth and Air France is expanding, especially in the Alps, the Balkans and the Central European region. Doubling its flights from Ljubljana to Paris, investing in a brand new Airbus A350 XWB fleet and planting trees as compensation for CO2 emissions, the company courageously looks into the future, where flying will be greener but also accessible to many.

Air France recently presented a five-year plan for reinvention with the primary goal to regain the leadership position in the industry. What are the critical aspects of the strategy?

We have had a new group CEO for a year now, Ben Smith. When he started, he had to decide his priorities, a five-year strategy which he recently presented. One of the main concepts of the plan is the emphasis on the three brands, Air France, KLM, and Transavia, focusing on their core values. Air France is strongly related to the image of France, the most visited country in the world, with Paris still being the number one tourist destination and so we want to focus more on this French image, linked to the brand.

KLM will concentrate on connections. KLM has an excellent position in Amsterdam, functioning as a hub to places all over the world. We want to keep this position in the future. Transavia is the low-cost airline brand we have in the group, operating both in France and the Netherlands. In the Netherlands it is already the number one local airline and in France we want to become first in terms of numbers of aircraft and such. One can see steady growth acceleration. We also want to grow our numbers, always focusing on customer appreciation. Every plan for the company involves many aspects around what we want to do for the customer on the cost side. In short, we will simplify the fleet, modernise the aircraft, the fleet will be much lighter and easier to operate. When you have fewer airplanes, you need less of different kinds of pilots, engineers and other experts.

Another critical pillar is sustainability, especially for Air France and KLM. We are already number one in the Dow Jones Sustainability Index, which is a leading indicator for a corporation's sustainability performance; the results have just come out. We are very proud of this position, but we need to keep on going to stay on top. Sustainability is one of the main challenges we are facing as an airline company. What remains is the last point, last year we worked hard together with all our partners, for example, joining forces with Delta Airlines regarding how can we work together. We cooperate on all the flights across the North Atlantic; it doesn't matter if you fly in an Air France aircraft or a Delta Airlines. Virgin Atlantic will be added soon and we are establishing a connection with Chinese carriers and also in Africa. We invest a lot in cooperation and consolidation of foreign markets.

Several airline companies are facing hardships, battling financial losses and personnel issues. Somehow, it seems air transport has changed significantly in its relatively short history. Has the airline business become unprofitable in the new era?

One can see that the aviation industry is consolidating. I am not sure if it is the most difficult time since aviation is roughly a hundred years old; there have always been difficult times since the beginning. If you look at the 60's and 70's when the jet engine, Airbus and the 747 were introduced, many airlines almost went bankrupt! Every decade brings its challenges, but what we have seen in the last five to ten years is a tough time. Competition is fierce and we need to give an excellent customer experience, offering the right price regarding the value. In aviation, size does matter and one needs to provide a large network along with the skillful purchase of aircraft.

Are customers today spoilt? Do people even realise how much it takes to run an airline?

I will never say customers are spoilt! An airline has to make sure to live up to what customers are expecting. I think there is a big difference between what people expect from a short flight, lets say a one or two-hour flight and a ten-hour flight, for example. The low-cost airlines in the past 10, 20 years expanded and made flying much more accessible to a broader circle of people, those who maybe didn't fly before. We see that on longer flights, people still expect a meal, a proper service; people want to have a choice, including the amount of baggage they take with them.
We offer a big network; it is not just Paris, one can fly from Ljubljana to nearly two hundred destinations, including North and South America and Africa, for example. Connecting flights are something local carriers aren't offering.

Will Air France also focus on cargo traffic?

I wouldn't say we will focus more on it, but we already handle cargo, we fill the belly of the aircraft on our flights with cargo. It helps that we have an extensive network and so the possibilities are endless, more and more people are ordering online and expecting fast delivery. One can be very fast sending things around, making use of the passenger network by making use of an aircraft that is already taking a journey. This is undoubtedly a significant contribution to our flights.

The company has made the pledge of Air France Horizon 2030, a manifesto of sustainable aviation. What are its main commitments and concerns? Is "Flygskam" - a new Swedish term that is already making waves in the media - meaning "flight shame," popularised by the teen climate activist, Greta Thunberg, a real threat?

Every airline that exists was created to connect people to the world. To me, travelling is a fantastic way to experience the world, new destinations and cultures, which is why many people like flying because our universe expands. But, there is also a vital sustainability question; because we love flying so much, we want to pass it onto the future generations. When I think about my children, I hope they will still be able to fly for years from now. Green travel is doubtless the main challenge for aviation now - if we don't overcome this problem, it will be challenging to do that forever.

Consequently, we take many initiatives. The main task is reducing CO2 emissions, which is why we have heavily invested in a new, modernised fleet. Airbus A350 XWB is the latest addition to our fleet; it has two engines and is 25% more efficient than the planes it replaced: producing fewer emissions but still carrying the same number of people. It is essential to take every possible measure to reduce emissions, but the fact is that we cannot get to zero yet. We also focus on reducing weight, since less weight on board means less fuel used. We try to find smarter ways in the airspace to make the routes shorter by simplifying them.

All this is a step in the right direction, but since we can't nullify the emissions, we try to find other ways to compensate for them. We announced that we would balance out CO2 emissions for domestic flights in France. Trains are a much better alternative to flying, so we cooperate with railroad companies. If one flies to Paris, the passenger can easily connect to other cities with a high-speed train. But for those who still have to take domestic flights, we compensate the emissions by planting trees.

In the longer term, we want to support and invest in technology development since it is not very likely that we, Air France, will build an aircraft in the future. But whenever we can stimulate this innovation and technology, maybe by the electrification of flying or use of biofuels, we could again reduce CO2 emissions by 80%. As you can see, we are investing in all different kinds of developments, also trying to set an example for the industry. There are a lot that airlines that can contribute, but some responsibility is also the passengers' shoulders. Of course, there is also some load on governments to invest in better connections for shorter distances and leave flying for longer ones. This way we will keep enjoying all the beautiful destinations the world has to offer in the future.

None of the industries thought much about sustainability until now. Do you think this is probably the main reason why there is so much to change, so quickly?

True, but we still see that that depends much on where people live in the world. Sustainability became a distinct topic in the Nordic countries; they are leading the way. In Sweden, Norway and Denmark, there is a substantial focus on sustainability. You see it also in the Netherlands and Switzerland. But there are other countries where people are just beginning to travel by plane more, such as China, for example.

In China, many people have never flown and are still waiting to go on their first flight. Initially, they will take an internal trip, but then a journey to Paris or Rome, for example. So, you see, different developments in the world but the demands for air travel are still significant, the numbers are rising every year. In the region of Central and Eastern Europe, many people had never travelled before or only short distances, but now they want to visit South America, for example. People like to explore, so we would like to make it possible for everyone, but definitely in a sustainable way.

The brand of Air France stands as a synonym for prestige. How does prestige fit with sustainability, considering the latter often demands to sacrifice comfort?

Good question! For me, do correct me if you see it differently, prestige is linked to the fine life of France. The wine, the champagne, the cuisine, romantic Paris in all its appeal, this is something we want to excel at. Stepping into the Air France aircraft should feel as if you've entered France. We have been rewarded for the best airline wine list; our La Premier class has won several Skytrax World Airline Awards, which is a huge recognition in the industry. We also serve champagne on every continental flight in every passenger category. All this is what prestige means to us, enjoying the good life that France is known for. We apply that special touch to all different types of travellers, regardless of the value of their ticket. This is how I see the prestige. One can sit in the economy class but still enjoys a little bit of luxury. We do want to offer reasonable fares, but we won't compromise the necessary foundations of the travelling experience; we work hard to make a difference in the customers' experience.

Air France is celebrating the 15th anniversary of the Ljubljana - Paris connection. How well has the company established itself in the area over the past 15 years?

The Alps region and Central Europe is the fastest-growing region for our company, if we talk about the capacity of people. It is nice to work here, with this consistent progress. In 2019, we reopened the route to Belgrade, Serbia, which was a festive moment. For the two months of summer, we fly to Split, Croatia, since the Croatian coast is becoming more and more popular with tourists. Here, in Ljubljana, we have already increased the number of flights from seven to ten flights per week, but from the winter season, the company will double the number of flights from six to thirteen weekly flights, flying twice per day, except on Saturdays. Growth is happening in both directions; more people are travelling to the world, but also many people visit the region - from both the leisure and business perspectives. The area is developing nicely and I only see further growth possibilities in the future. This is the positive side of aviation, we previously talked about challenges, but there are so many benefits air connections bring to a city, a country or an area.

What are the biggest challenges Air France is facing in Central Europe and the Balkan region?

There aren't many. Maybe the infrastructure development since the airports have to follow the increasing number of more and more passengers, there are demands for huge investments and renovations of facilities, which is a challenge but also a growth opportunity.

Air France supports the French Aeronautical Federation in purchasing the Pipistrel Alpha Electro, a very light, all-electric, single-engine, two-seater. The company is lending the expertise of its mechanics and technicians to this new aircraft. Since Pipistrel is a Slovene company, do you think tiny Slovenia can become an aviation nation in the future?

Whenever we can stimulate new technology for creating a more sustainable future, we are willing to support the industry. I don't think electric aircrafts will be the solution for long flights for many people. As we can see now, the electric technology is developing mainly for smaller aircraft and shorter distances, but hopefully new ideas will develop from existing solutions.

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