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TVF-2013-09 - LILLE GROWTH
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Formed and started operations in 2007. Domestic, regional & international, scheduled & charter, passenger & cargo, jet airplane services.
18 Avenue Louis Bleriot
91551 Paray Vielle Poste, France
FRANCE (FRENCH REPUBLIC) WAS ESTABLISHED IN 843, IT COVERS AN AREA OF 551,700 SQ KM, ITS POPULATION IS 59 MILLION, ITS CAPITAL CITY IS PARIS, AND ITS OFFICIAL LANGUAGE IS FRENCH.
November 2006: The Air France (AFA)/(KLM) Group expects to decide this month, whether it will launch a new carrier focusing on the medium-haul leisure market.
The start-up will be modeled on its Amsterdam-based transavia.com (TAV) subsidiary, which offers a mixture of charter and scheduled low-fare flights, and would be based at Paris Orly (ORY) South. It would operate a fleet of 186-seat 737-800s to a selection of popular tourist destinations such as Morocco, Tunisia and Spain.
"This initiative will meet with the demand for scheduled flights to leisure destinations not presently served by Air France (AFA)," the carrier said in a statement, noting that the initiative "would fit in very well with the growth strategy of transavia.com (TAV), which has for some time been planning to operate from additional bases outside the Netherlands." In addition to Air France (AFA) "Soleil" flights, as the project has been dubbed, transavia.com (TAV) would commence charter operations from (ORY). Transavia.com (TAV) denied press speculation that part of its fleet would be transferred to the new company.
The new airline would be a jointly owned subsidiary of Air France (AFA) (60%) and transavia.com (TAV) (40%). It would be registered in France and personnel would have a working contract under French labor law. Flights would be sold via tour operators and directly on a seat-only basis to customers in France and the destinations served. Direct sales would be undertaken via the transavia.com (TAV) website and its call center. Commencement of operations is planned for spring 2007.
The creation of a hybrid low-fare/charter airline by (AFA) is rather surprising considering management's longstanding resistance to the idea of an in-house Low Cost Carrier (LCC) to compete with Ryanair (RYR) and easyJet (EZY). (AFA) quit the charter segment in 1997, when it closed Air Charter (ACI).
Transavia, (TAV) launched in 1965 and which and has reported a profit for 28 consecutive years, has experimented with several models. In 2005, it merged its basiqair.com brand for low-fare flights and Transavia (TAV) for charter flights, into transavia.com (TAV). It is a wholly owned subsidiary of (KLM) and operates 31 737NGs. In 2005 - 2006 it posted a net operating result of +€32 million/+$41 million on revenues of €468 million.
Later, Transavia.com (TAV)'s French equivalent (TVF) will commence operations next summer with four leased 737-800s, following approval by the boards of Air France (AFA) and Transavia.com (TAV). Initial startup capital will be €22 million/$28.8 million, split 60/40 between Air France (AFA) and the Dutch Transavia.com (TAV). Lionel Guerin, currently Chairman & CEO of French regional airline, Airlinair, has been appointed Chairman of the management board. Management expects to achieve revenues of €250 - €300 million in the 3rd year of operations and post a profit from the 2nd year. Next summer, some 10 Mediterranean destinations (mainly Morocco, Tunisia, Spain, Italy and Egypt) will be served by 67 weekly flights out of Paris Orly. From winter 2007 - 2008, the number of destinations may increase to 15, while the fleet should grow to seven 186-seat 737-800s in the 2nd year, and 9 in the 3rd.
The commercial brand will be Transavia.com "in order to take advantage of the existing brand, which already has a reputation for being a reliable, punctual and safe airline," according to a statement by the two shareholders, who added that "production costs and productivity must be consistent with the applicable fares and will benefit from the very substantial synergies achieved with Transavia.com (TAV) in the Netherlands." Management of the new carrier, which will be based at Orly, will be separate from (AFA). The airline should create some +400 new jobs by 2009, comprising 80 ground staff (MT) positions, 100 flight deck crew (FC), and approximately 220 cabin crew (CA).
May 2007: French Civil Aviation grants an Air Operator's Certificate (AOC) to TransAvia France (TVF).
(TVF) operates its 1st flight on May 12, from Paris Orly (ORY) to Porto.
Starts Paris Orly (ORY) - Porto, using 737-700s. Starting June 1st, (ORY) - Djerba, - Gerona, using 737-800s. Starting June 30th, (ORY) - Agadir, - Palermo, using 737-800s. Starting July 2nd, (ORY) - Heraklion, using 737-800s. Starting July 10th, (ORY) - Oujda, using 737-800s. Starting July 11th, (ORY) - Monastir, using 737-800s. Starting July 15th, (ORY) - Catania, using 737-800s.
March 2008: Babcock & Brown Aircraft Management (BBB) announced the delivery of a new 737-800 to Transavia France (TVF). It is the third of five new 737-800s the lessor will lease to the Air France (AFA)/(KLM) subsidiary. The final 2 are scheduled for delivery in April and May.
737-8HX (29651, F-GZHC), ex-Delta Airlines (DAL), (BBAM) (BBB) leased for Transavia France (TVF) operations.
April 2008: 737-8K2 (29650, F-GZHD), for TransAvia France (TVF) operations.
May 2008: 737-8K2 (29678, F-GZHE), for TransAvia France (TVF) operations.
February 2009: TransAvia France (TVF) provides scheduled and non-scheduled flights from Paris Orly (ORY) airport.
(IATA) Code: TO. (ICAO) Code: TVF (Callsign - FRANCE SOLEIL).
Parent organization/shareholders: Air France (AFA) (60%); TransAvia Airlines (TAV) (40%).
Main Base: Paris Orly airport (ORY).
(TVF) will commence 2x-weekly flights from Paris Orly to Olbia on April 9 and to Catania on June 29 aboard 737s.
January 2012: Transavia France (TVF) is introducing new destinations from its Nantes and Paris Orly bases:
Nantes - Larnaca: weekly seasonal 737-800 service between April 11 and September 19;
Nantes - Lisbon: 2x-weekly seasonal 737-800 service between April 5 and September 27;
Nantes - Rome Fiumicino: 3x-weekly seasonal 737-800 service between April 5 and September 29;
Paris Orly - Bodrum: weekly seasonal 737-800 service between April 15 and September 30;
Paris Orly - Larnaca: weekly seasonal 737-800 service between April 11 and September 26 .
April 2012: Transavia France (TVF) serves as a low-cost carrier (LCC) tour operator for its parent company, AirFrance (AFA), just as its Dutch counterpart, Transavia (TAV) does for (KLM). But will it assume a new role as (AFA) contemplates a new (LCC), possibly using the (TAV) brand? As that question get worked out, (TVF) continues to do its thing, launching Rome and Lisbon flights from Nantes, while naming a handful of other new Nantes and Lille routes to start later this year. Nantes is one of (TVF)’s two major bases. The other is Paris Orly. (TVF) flew -9% fewer flights this first quarter than last, although passenger counts were up +9% on higher load factors.
May 2012: AirFrance (AFA) has reiterated its "Transform 2015" plans to increase productivity by +20% and expects to sign new agreements with ground personnel, flight deck (FC) and cabin crew (CA) unions at the end of June. Negotiations have been ongoing since the end of March.
(AFA) will also be trimming a number of “excess staff,” it said in an update on "Transform 2015." However, it will not disclose exact numbers until the second half of June, “depending on the outcome of the talks and decisions concerning the "Transform 2015" plan.” (AFA) said it hoped to minimize involuntary lay-offs.
(AFA) is also restructuring short- and medium-haul operations into three distinct areas of activity.
(AFA)’s own short- and medium-haul operations will include flights feeding long-haul services at Paris Charles de Gaulle (CDG), routes with a high proportion of business travelers in France and Europe, plus flights from Marseille (MRS), Nice (NCE), and Toulouse (TLS).
Regional activities will be focused on its Regional, Britair and Airlinair subsidiaries, operating to (CDG) on behalf of (AFA), as well as point-to-point flights from Paris-Orly (ORY) covering the domestic network.
Leisure activities will be concentrated on Transavia France (TVF), which will operate from (ORY) to Europe and the Mediterranean (excluding (MRS), (NCE) and (TLS)). By 2015 - 2016, the (TVF) fleet is expected to have grown from its current eight airplanes to between 20 and 22.
(AFA) said this restructuring would help it “optimize the organization of its regional flight operations and make better use of growth in the leisure segment with (TVF).”
In addition, (AFA) plans to increase fleet utilization by >1 hour a day, with crews assigned to more flights per rotation. This will enable (AFA) to reduce its short- and medium-haul fleet by 34 airplanes by 2014 (excluding (TVF) without affecting the number of available seat kms.
(AFA) said it hoped to grow profitable long-haul routes this winter and suspend unprofitable ones. It is also confident that lower costs and greater aircrew productivity will support the introduction of new routes.
(AFA) Chairman & (CEO) Alexandre de Juniac said these objectives were “ambitious but feasible.” He said (AFA) needed to “renovate its organization and increase productivity by +20%.” The measures, he said, would help consolidate the airline’s future in an environment of “extremely fierce international competition.”
June 2012: AirFrance (AFA) has called for a -20% cut in costs and a reduction of more than >-5,100 jobs by December 2013 as part of its "Transform 2015" strategic plan to restore profitability.
(AFA) said it hoped the job reductions could be achieved without compulsory redundancies, but the option remains open if staff do not agree to voluntary measures, including incentives for early retirement or voluntary redundancy, moves to part-time work, or job-shares. The aim is to reduce headcount to 49,301 in a 2-year period that began in December 2011. Attrition during the period is estimated at -1,712 personnel, leaving a further -3,410 to depart, including 450 pilots (FC) and 904 cabin crew (CA).
“AirFrance (AFA) is facing a fundamental choice about its future,” said (AFA) Chairman & (CEO) Alexandre de Juniac, announcing the strategy plan. “If we all make the necessary equitably distributed efforts, there will be no forced departures.”
Other points in the plan include restructuring short- and medium-haul operations around three poles: (AFA) mainline, a new regional hub and (LCC) subsidiary, Transavia France (TVF); combining operations of its three regional subsidiaries – Brit Air, Airlinair and Regional – at this new hub; developing (TVF) to attract the leisure market, with new routes in 2013 from Orly, Lille, Lyon and Nantes; improving long-haul operations by investing several hundred million euros in new on board facilities; and accelerating cost reduction in the cargo division.
July 2012: AirFrance (AFA) has earmarked its Paris Orly Airport-based hybrid carrier, Transavia.com to take a larger role in its short/medium-haul network, which necessitates a dramatic shake-up in order to safeguard the sustainability of parent company AirFrance (AFA) - (KLM). Transavia.com France (TVF) will launch new routes from its home base at Orly and from three regional French airports (Nantes, Lille-Lesquin and Lyon) as it seeks to defend (AFA)’s dominant position in these airports against the increasing inroads of Low Cost Carrier (LCC)s.
easyJet (EZY) has a base at Paris Orly and at Lyon-Saint Exupéry Airport, while Europe’s newest (LCC), Volotea (VLZ), opened a base at Nantes Atlantique Airport on June 1st 2012 and has announced route expansions from Lille. If Volotea (VLZ) follows up on its stated intentions, its network will inflate to 20 routes from Nantes and bring the capacity share of (LCC)s at the airport to >40%.
(TVF) was founded in November 2006 as an offshoot of the Dutch charter/low-cost carrier Transavia Airlines (TAV), a wholly owned subsidiary of (KLM), to re-enter the leisure market from France to countries in the Mediterranean basin.
October 2012: AirFrance (AFA) has rolled out a new management structure as part of its "Transform 2015" plan to achieve 20% efficiencies and restore profitability.
As of January 1, (AFA) will be structured into eight business units: — long-haul, medium-haul at Paris-(CDG), Paris-Orly and the regional airports, the French Regional Hub, Transavia France (TVF), cargo, industrial operations and Servair.
According to an (AFA) statement, each business unit will “notably be responsible for controlling costs in its area of management as well as following up the implementation of Transform 2015.” (AFA) also said its passenger operations will be structured into three business units: — long-haul, medium-haul at Paris-CDG, and Paris-Orly and the regional airports.
“Each Vice President will have responsibility for the different stages of the customer’s trip: from marketing to the implementation of the ground and in-flight products by the ground and in-flight product teams. A pilot (FC) and Cabin Crew Manager will also report functionally to their Vice President to ensure optimum links with crews,” (AFA) said. Seven Project Managers have been appointed to work on this new organization, according to (AFA).
(AFA) Chairman & (CEO) Alexandre de Juniac said: “Customer focus, reactivity and team work are our guiding principles that have led us to choose this organization. It aims to favor the roll-out of Transform 2015 and meet its ambitious objectives of a return to competitiveness and a more upmarket positioning of its products and services.”
November 2012: Transavia France (TVF) will launch 2x-weekly, Paris Orly - Essaouira service from March 1, 2013.
December 2012: Transavia France (TVF) will launch service from Lyon to Marrakech (2x-weekly), Oujda (weekly), Monastir (2x-weekly), Tunis (3x-weekly) and Seville (weekly) on April 20.
(GE) Capital Aviation Services Limited (GECAS) (GEF) announced it will lease two new 737-800 airplanes to new customer, Transavia France (TVF). Delivery of the 737-800 is scheduled for early 2013 and will expand (TVF)’s fleet. The low-cost carrier (LCC) operates a fleet of 10 737-800s to >30 destinations.
January 2013: Transavia France ((IATA) Code: TO, based at Paris Orly airport (ORY)) (TVF) has agreed with (GECAS) (GEF) to lease two additional new 737-800s from spring 2013. The AirFrance (AFA) owned low-cost carrier (LCC) currently already operates eight 737-800s from bases at Nantes Atlantique (NTE) and Paris Orly airports and will open a third base at Lyon St Exupéry (LYS) airport from March 2013.
(TVF) will launch service from Lyon to Marrakech (2X-weekly), Oujda (weekly), Monastir (2X-weekly), Tunis (3X-weekly), and Seville (weekly) on April 20.
(TVF) increased its offering in the market from France to Venice (VCE) on 20 December with the launch of twice-weekly services from Lille (LIL) and Nantes (NTE). In addition, (TVF) launched services to Berlin Tegel (TXL) of the same frequency; both new destinations from Nantes will be served on a seasonal basis until mid-March. Volotea (VLT) provides competition on the route from Nantes to Venice, matching (TVF) in terms of weekly frequencies.
(TVF) will launch 2X-weekly, Paris Orly - Malta service on April 25.
AirFrance (AFA) leisure arm, Transavia France (TVF) has named Antoine Pussiau as its new (CEO), replacing Lionel Guerin in the role.
Lionel Guerin is leaving Transavia France (TVF) to become the (CEO) of AirFrance (AFA)’s new regional airline HOP! Guerin, who was formerly (CEO) of French regional Airlinair, set up Transavia France (TVF) and has led the reorganization of AirFrance’s regional operations.
Guerin’s former role at (TVF) France will be taken over by Pussiau, who has been AirFrance General Manager Europe & North Africa since 2010.
Pussiau has been with (AFA) since 1981. He has held a number of positions, as (AFA)’s Boeing representative in Seattle, head of technical and a number of overseas country manager’s positions.
March 2013: Transavia.com France (TVF) inaugurated services on the 2,200-km route from Paris Orly (ORY) to Essaouira (ESU), located on the Moroccan Atlantic coast, on 1 March. Twice-weekly flights are currently on offer on the route and carried out using (TVF)’s fleet of 737-800s. (TVF), which already serves Marrakesh (11 weekly frequencies), Agadir (4) and Oujda (2) from the Paris airport, faces competition from Royal Air Maroc (RAM)’s weekly service on the new route.
AirFrance (AFA) will review its regional hubs this fall, following a lackluster 2012 performance from its domestic and medium-haul operations. In October 2011, (AFA) announced a “commercial offensive” from the French provinces aimed at challenging its low-cost carrier (LCC) rivals. This initiative involved the creation of four new regional hubs at Bordeaux, Marseille, Nice, and Toulouse. However, a number of routes and frequencies have already been cut, prompting speculation about possible base closures.
“Medium-haul losses were not reduced in 2012, in fact there was a slight increase over 2011 and above all this came from the regional bases,” (AFA)-(KLM) Group Chairman & (CEO), Jean-Cyril Spinetta said. He added that the company will take a “very strong look” at the regional bases in September to take stock of the situation.
However, he stressed this would simply be an evaluation of “where we are” and added that no base closures were expected. “I don’t have the impression that we will close the bases in September,” he said.
Marseille was the first to receive a capacity boost, followed by Toulouse and Nice in spring 2012 and Bordeaux last summer. Spinetta stressed it was too early to tell whether the strategy has been a success. Conversely, leisure operation Transavia (which has arms in both France (TVF) and the Netherlands (TAV)) turned in a bright performance. Revenues rose +9% to €852 million/$1.1 billion, off the back of a +3% increase in capacity and a +4% uptick in demand. No profitability figures were given, although (AFA)-(KLM) said Transavia (TVF) is close to breakeven.
Transavia France (TVF) will boost its fleet from eight to 11 airplanes this year, while (AFA)’s core Airbus (EDS) medium-haul fleet will be slashed by 16 airplanes this summer. Spinetta said the removal of the 16 airplanes will only lead to a “slight” drop in production because unions have agreed to greater productivity on the same pay.
“The [medium-haul] result for 2012 was quite obviously disappointing, but in 2013 we will post significant improvements,” Spinetta said. “Now we have renegotiated our collective agreements and identified new ways of operating the airplanes, all the structures are in place. This did not fully apply in 2012, but it will in 2013 and I am convinced this will improve.”
April 2013: Becoming destinations three, four and five, respectively, from the largest city in French Flanders, Transavia.com France (TVF) has inaugurated three new routes from Lille (LIL). Twice-weekly operations to Ajaccio (AJA) and Rome Fiumicino (FCO) will be joined by a weekly route to Agadir (AGA) in Morocco. The link to the Eternal City will complement (TVF)’s existing Italian operations to Venice, while in Morocco the 2,477 km route to Agadir, will join weekly flights already flown to Marrakech from the regional French airport. (TVF) also began twice-weekly operations to the Corsican capital from Nantes (NTE), the sixth largest city in France.
Transavia.com France (TVF) has started four new flights from two French regional airports. On 16 April, (TVF) inaugurated services on the 1,800 km route between Lille (LIL) in French Flanders to Oujda (OUD) in north-east Morocco. Three more routes were started from (TVF)’s third base (Lille is the fourth) in Lyon (LYS), with six weekly flights split between Heraklion (HER), Marrakech (RAK), and Seville (SVQ).
(TVF) launched new flights from Paris Orly (ORY) to Lisbon (LIS), Malta (MLA), Naples (NAP), and Venice (VCE).
July 2013: AirFrance (AFA)-(KLM) leisure subsidiary, Transavia (TAV) is to take on more medium-haul leisure destinations served by AirFrance (AFA) after a successful test on four routes, says (CEO), Antoine Pussiau. He describes the arrangement under which services to Tunis, Naples, Venice, and Lisbon are shared between the two airlines (and marketed by both) as a "wing-to-wing" partnership. Flightglobal Pro data shows that of the six weekly Transavia France (TVF) flights to Tunisia's capital from Paris Orly, one is operated by AirFrance (AFA) and the other five by (TVF).
"There are some markets which are really fitting our network, which are leisure point-to-point [and] which we could operate without jeopardising the business of AirFrance (AFA) - which is mainly done in Paris Charles de Gaulle as part of its connections with long-haul," he said.
Pussiau said "we decided to launch these routes for it [AirFrance (AFA)] to be on the market and obviously to keep this market in AirFrance (AFA)-(KLM) instead of letting it go to some competitors." He said the four routes were "done as a test and, as the results are quite positive, we hope we will be able to add new 'wing-to-wing' leisure routes." However, he added: "This has to be done in agreement with AirFrance (AFA) (and especially the unions in AirFrance) so it is not so easy."
In July 2012, AirFrance (AFA) began offering its pilots (FC) the equivalent of five to six months of salary to transfer to Transavia France (TVF). Those who switched have kept the same salaries they earned at AirFrance (AFA), but work around +15% more hours.
However, Pussiau denies that with its lower unit costs, Transavia France (TVF) could take over AirFrance (AFA)'s medium-haul operations. "What we will do in that [arrangement] is just what we do today, which is leisure point-to-point. If we see some routes which are fitting in our business model, we can fly, but if it is out of our model, we won't fly," he says.
Pussiau says Transavia France (TVF)'s strategy is to position itself as "a hybrid leisure airline mainly working for tour operators and also selling seats on the internet. We are not targeting business travellers, we are not targeting connections. We are not feeding any hub, so we want to develop our network on our model, which is point-to-point leisure." (TVF), he adds, is low-cost "in the sense that we are using the model of low-cost, outsourcing most of our operations at the airport, using one type of airplane, providing a very simple product". As the (TVF) brand gains a higher profile in France, he hopes to increase the percentage of seats sold directly to consumers through its website, which he says currently stands at 45%, with the other 55% sold through tour operators.
Growth in leisure services from French regional airports is where Pussiau sees most potential for expansion for his airline and where he feels its low unit costs could help the (AFA)-(KLM) group compete for leisure traffic with the likes of EasyJet (EZY), Ryanair (RYR), Volotea (VLT), and Vueling (VUZ). In order to do so, he says, the airline is growing its fleet by "three or four airplanes per year. This year, we are adding three airplanes so we now are at 11. Next year we have already ordered three, so it will be 14 and then we will be around 20 - 22 [airplanes] by 2016". Transavia France (TVF)'s fleet is comprised solely of 737-800s, each equipped with 186Y seats in economy configuration.
Earlier this year, while in his former role as head of AirFrance (AFA), (AAFA)-(KLM) (CEO), Alexandre de Juniac indicated that changes will be made to AirFrance (AFA)'s regional bases in September, after a review of operations is complete. This is likely to include a cut in routes and airplanes at the three bases, situated in Marseille, Nice, and Toulouse.
September 2013: French leisure airline Transavia France (TVF) has signed a contract with Toulouse-based software solutions specialist "Open Airlines" in a bid to reduce fuel burn. (TVF) will use Open Airlines’ Skybreathe Fuel Efficiency software solution, which is expected to help reduce fuel between -1% and -4%, according to Open Airlines.
The software is the outcome of a four-year Clean Sky Contribution of Airlines for the Reduction of Industry Nuisances & Gases (CARING) (R&D) project in which Open Airlines and transavia.com partnered. It involved the development of algorithms that analyze all of an airline’s flights and propose fuel savings solutions.
(TVF) is part of the AirFrance (AFA) - (KLM) Group. Open Airlines was founded in 2006 to help airlines optimize flight operations and reduce costs.
AirFrance (AFA) - (KLM) leisure carrier, Transavia France (TVF) has struck a seasonal lease deal with Canada’s Air Transat (AIJ), covering the use of up to nine 737-800s by 2019.
The deal, which extends a 2010 winter capacity agreement, calls for Transavia France (TVF) to lease four Air Transat (AIJ) 737-800s during winter 2015, five in 2016, six in 2017, seven in 2018 and eight in 2019.
Transavia France (TVF) (CEO), Antoine Pussiau and Air Transat (AIJ) (CEO), Jean-Marc Eustache said the deal helps to create a modular fleet, giving greater flexibility to vary capacity according to seasonal demand.
Lille Airport was France’s fastest growing airport in five months out of seven so far in 2013, with Bastia in Corsica stealing its crown in May and June, only for the northern France airport to win it back in July. transavia.com France (TVF) has been a significant contributory factor in its ongoing success. SEE ATTACHED - - "TVF-2013-09 LILLE GROWTH."
Data for the first seven months of 2013 shows that the majority of major French airports have reported passenger growth of at least +2%, but with only three achieving double-digit growth. Overall, traffic for these top 15 French airports posted modest growth of +1.3%, increasing by over >1.1 million passengers and topping the 84 million mark. The top performer is Lille Airport, which has seen passenger numbers surge by more than >21% between January and July compared with the same period last year, thanks to the addition of at least 13 new routes from six different airlines (easyJet (EZY), HOP! (AFA), Ryanair (RYR), transavia.com France (TVF), TWIN JET, and Volotea (VLT)).
November 2013: SR Technics (SWS) has signed a five-year contract with Transavia France (TVF) for light, line and limited base maintenance on 11 737s.
April 2014: transavia.com France (TVF), which previously expanded its Paris Orly base with seven routes, commenced a further two links, both of which are operated twice-weekly using its 186Y-seat 737-800s. With the longest route being the 2,297 km sector launched (Mondays and Fridays) from Strasbourg (SXB) to Marrakech (RAK) on April 21st, and the shortest being inaugurated from Paris Orly (ORY) to Budapest (BUD) on April 15th, (TVF) will face no competition on the new airport pairs. The new service to the Hungarian capital will see a frequency increase to thrice-weekly from May 13th. (TVF) already serves Marrakech from Lille (twice-weekly), Lyon (twice-weekly), Nantes (four times weekly) and Paris Orly (15 times weekly).
May 2014: transavia.com France (TVF), has begun four new routes this month from two different airports in France to three different destinations in Greece, Malta and Portugal. As a result of these inaugural flights (TVF) now operates eight scheduled routes from Lyon and 12 from Nantes. Of the four new routes, the longest sector is the Nantes (NTE) to Athens (ATH) route (at 2,321 km) with the shortest being the Lyon (LYS) service to Porto (OPO) (at 1,217 km).
Transavia France (TVF) began 3x-weekly, Paris Orly - Budapest service.
July 2014: transavia.com France (TVF) touched down in Barcelona (BCN) this month, beginning 13 times weekly flights from its Paris Orly (ORY) base. The route will becomes its fifth to Spain from the French capital, joining its current operations to Malaga, Ibiza, Madrid, and Seville. Starting on July 4th, the 826 km sector will be up against Vueling (VUZ)’s 60 weekly flights, and will be operated by the (TVF)’s 189-seat 737-800s.
September 2014: Air France (AFA) has detailed its new "Perform 2020" strategy, the successor to its "Transform 2015" program, targeting a 10% (EBITDAR) margin by 2017.
"Transform 2015," which aimed to slash -€1 billion/-$1.3 billion from (AFA)’s costs, will come to a close at the end of the year, paving the way for "Perform 2020." The new program’s targets are for a return on capital employed (ROCE) to 9 - 11% and hit a net debt/(EBITDAR) ratio of below <2.5 by 2017, through expansion into growth markets and the restructuring of loss-making divisions.
This will be achieved by expanding its passenger hub, centralizing point-to-point operations under a single business unit, substantially growing its Transavia (TAV)/(TVF) leisure unit, trimming down its dedicated freighter operations and expanding its maintenance business. These initiatives will be coupled with more productivity and cost control efforts.
“By 2020, we will have built an air transport group focused on a leading long-haul network at the heart of global alliances, with a portfolio of unique brands, restructured short- and medium-haul operations, with a reinforced presence in the low cost segment in Europe, leadership positions in cargo, maintenance and catering, and a significantly improved risk profile both operationally and financially,” (AFA) - (KLM)’s Chairman & (CEO), Alexandre de Juniac said.
This will be supported by the reinforcement of strategic partnerships and strict capacity discipline, with just 1% - 1.5% (ASK) growth planned for 2015 - 2017. (AFA) also plans to revamp its products and services, with an announcement expected on September 23.
As expected, its point-to-point network and cost base will be restructured into a single business unit, combining HOP! and (AFA) point-to-point operations, to hit operating breakeven by 2017. The dedicated cargo fleet will also be slimmed from 14 to just five airplanes by the end of 2016 for a return to breakeven by 2017, versus a -€110 million/-$142 million loss in 2013, or a -€200 million loss including belly capacity.
Meanwhile, Transavia (TAV)/(TVF) will open new bases outside France and the Netherlands. “By 2017, (TAV)/(TVF) will rank among the leading low-cost carriers (LCC)s in Europe, operating a fleet of 100 airplanes and carrying more than >20 million passengers. This business should contribute an additional +€100 million of (EBITDAR) in 2017. With profitability being impacted by ongoing ramp-up costs, the group is targeting operating profits by 2018,” said the company. (TAV)/(TVF)’s growth will be financed by the €339 million, raised from the partial sale of (AFA)’s Amadeus shares on September 9.
(AFA)’s Maintenance arm is also slated for growth, particularly its engines and components work, with potential acquisitions on the cards. “This business should generate an additional +€50 million to +€80 million of (EBITDAR) in 2017, depending on acquisitions,” the Group said.
There will also be a continued push to shave -1% to -1.5% from its unit costs each year. (AFA) said this will go “beyond traditional efforts” and will include the ongoing restructuring of uncompetitive activities and further staff productivity negotiations.
Air France (AFA) - (KLM) plans to grow the fleet of its low-cost (carrier) subsidiary, Transavia (TAV)/(TVF) to 100 airplanes by 2017, the group’s Chairman & (CEO) Alexandre de Juniac stated.
(AFA) pilots (FC) have now joined flight attendants (CA) in demanding the right to refuse to fly to destinations in the West African countries affected by Ebola.
The move threatens to further isolate three nations most ravaged by the disease (Guinea, Liberia and Sierra Leone).
According to "Le Monde" in Paris, François Hamant, a representative of the pilot (FC)'s union in France, filed an official government complaint. It demands a commitment from (AFA) management that any pilot (FC) or flight attendant (CA) not wanting to fly to the Ebola-impacted West African nations can refuse to make the flight without suffering any adverse consequences, either financial or disciplinary.
Julien Duboz, spokesman for the Syndicat des Pilotes d'Air France (AFA), the French union of airline pilots (FC), confirmed to "Le Monde" that while the union is aware of some (AFA) pilots (FC) who have refused to fly to West Africa, the defections are "rare."
As (WND) reported, the World Health Organization (WNO) recently warned that Ebola is "expanding exponentially" in West Africa, with the problem so severe in Liberia, that many thousands of new cases expected in country over the coming three weeks.
Last Friday, (WHO) reported in Geneva that one in 10 health-care workers treating Ebola patients in West Africa has become infected with the disease.
Nevertheless, (WHO) has repeatedly issued advisories contending airline pilots (FC) and crews are protected by rigorous screening to keep from flights any passenger showing symptoms of Ebola.
(WHO) maintains that while the incubation period for Ebola can be as long as 21 days, those infected with the disease who are not yet displaying symptoms represent no danger of transmitting it.
Duboz explained to Le Monde that (AFA) so far has not had a single incident of a member of the aircrew ((FC) - (CA)) or a passenger becoming infected with Ebola, despite a continuation of regularly scheduled (AFA) flights to West African destinations.
Dr Margaret Chan, the (WHO) Director General, has repeatedly insisted that disruptions in commercial air travel to West Africa will impede the efforts of international health organizations to contain and combat the disease. "We must be careful not to characterize Ebola as 'an African disease,'" Chan said.
She warned that the stigmatization of the disease with any racial classification would be detrimental to the UN effort to control it. "This is an international issue, a global threat," she continued. "We need to make sure Ebola patients and Ebola-affected countries aren't stigmatized and isolated."
Air France (AFA) said that it was operating slightly less than half its normal flights due to the start of strike action by pilots (FC). It planned to operate an estimated 48% of services Monday September 15. On Monday afternoon, it said that figure would drop to 40% Tuesday as some 60% of pilots (FC) joined the industrial action, but warned that further disruption was a possibility.
The strike is in response to the loss-making airline’s plans to cut costs, particularly on short-haul routes. (LCC) subsidiary, Transavia (TAV)/(TVF) is due to be expanded considerably, sparking worries among mainline pilots (FC) that this could be at the expense of their own positions.
With pilots (FC) planning to strike between September 15 - 22, (AFA) is recommending passengers due to fly within that period to postpone their journeys until after the end of the disruption.
French labor law requirements on unions, allow (AFA) to estimate the effect of strike action on a day-to-day basis, some 48 hours in advance. (AFA) intends to communicate the latest situation to passengers the day prior to their scheduled departure.
If a flight is canceled, customers will receive financial compensation of €25O/$320 for domestic flights, €400 for European services and €600 for long-haul flights.
(AFA) may operate only around 40% of its normal scheduled flights on September 17th, as a week-long strike by pilots (FC) enters its third day.
The estimate of the number of operating services is the same as on September 16th, when around 60% of (AFA)’s pilots (FC) took industrial action to protest at (AFA)’s plans to cut costs, particularly by increasing the role of its low-cost Transavia (TAV)/(TVF) subsidiary. Staff from the mainline airline fear this will adversely affect their working conditions.
(AFA) will find out Saturday, September 20th, if it faces a longer than anticipated industrial action, as pilots (FC) threatened to make their week-long industrial action indefinite.
The increased threat to (AFA)’s services and finances came after (AFA) - (KLM) Chairman & (CEO), Alexandre de Juniac said he would curtail the expansion of low-cost carrier (LCC) subsidiary, Transavia France (TVF) if a settlement with pilots (FC) cannot be reached.
Questioned about (AFA)’s relations with pilots (FC) following the release of its new Perform 2020 restructuring plan, he said he found it odd the pilots (FC) were striking over plans he said were aimed at bringing growth to the loss-making company.
(AFA) wants to grow Transavia France (TVF) to help fight the threat from (LCC)s, which have had a serious impact on (AFA)’s short-haul operations. Pilots (FC) fear that pay and working conditions with Transavia (TVF) will be less favorable than on the mainline carrier.
“We are trying to conclude the negotiations to avoid conflict, which is not good news for the company,” de Juniac said. “I find this situation strange because we are proposing (especially to (AFA) pilots (FC)) new jobs, growth and new airplanes, totally on a voluntary basis.
“In the past, 36 (AFA) pilots (FC) have applied to transfer to (TVF). They are still with (TVF) and they are quite happy, so this [type of transfer] is not unknown territory and they [the pilots (FC) who have transferred] are not complaining. “It is only a plus, a win-win for everybody, so I find it strange that we have a strike over a project for growth.”
However, if plans for Transavia France (TVF) are blocked, (AFA) would apply the brakes there. “We are aiming to negotiate a clever agreement to allow (AFA) pilots (FC) to come and work for (TVF), under (TVF) conditions. If we do not succeed, we will leave (TVF) as it is, at 14 airplanes, and we will probably accelerate the development of Transavia Europe (TAV).
“Unfortunately, by leaving Transavia France (TVF) in its current position, we will have to give strategic slots and strategic routes to our (LCC) competitors, which would be a pity. I would prefer to open these routes and to retain these slots for my colleagues, for (TVF), (AFA) - (KLM) employees and (AFA) - (KLM) pilots (FC).”
Meanwhile, Jean-Louis Barber, head of the (SNPL) pilots’ union, which makes up 77% of (AFA)’s pilots (FC), was reported by French media as saying the strike could become indefinite.
(SNPL) spokesman, Vincent Fournier said: “We'll find out on September 20th if the strike is extended to next week. However, there is a good chance that this is the case. “The pilots (FC) are in disagreement with the management of (AFA) on the strategy of the company in the short- and medium-haul. The disagreement is not on the corporate issues, but on the project.”
(AFA) said it had deployed around 7,000 staff to provide assistance to passengers caught up in the dispute.
(AFA)’s regional subsidiary HOP! and its partner (KLM) are unaffected by the strike action.
The heavily loss-making carrier estimates it is losing a further -€10 to -€15 million/-$13 to -$19 million every day the strike continues. (AFA) has to find alternative flights for passengers and pay compensation to those whose flights are canceled under European Union (EU) consumer legislation.
Pressure on Air France (AFA) management increased September 22nd as the pilot (FC) strike entered the second week. “Disrupting flight operations for seven days [will mean] catastrophic consequences for the company’s customers, staff and financial situation,” (AFA) said. It said the strike is generating an operating loss of up to -€20 million/-$26 million per day, plus customer compensations and the impact of gradual recovery in traffic following the return to normal operations. Once the dispute is over, the Group said it will update its (EBITDA) target for the 2014 financial year.
A spokesman for the French government was quoted in the media as saying financial damages for (AFA) could amount to €180 million if the strike continues through Friday. The strike is in response to the loss-making airline’s plans to cut costs, particularly on short-haul routes. Low-cost subsidiary Transavia (TAV)/(TVF) had been due to be expanded considerably, sparking worries among mainline pilots (FC) that this could be at the expense of their own positions.
Negotiations with pilot (FC) unions, notably (SNPL), have taken place daily. Since the beginning of the strike action, Air France (AFA) - (KLM) said Chairman & (CEO) Alexandre de Juniac and (AFA) (CEO), Frédéric Gagey have spent over >40 hours in meetings with pilot (FC) representatives.
(AFA) said it has been submitting new constructive proposals to resolve this conflict every day, but the pilot (FC) unions have not put forward any proposal demonstrating their willingness to find a solution. “Management can only note that talks have reached a deadlocked situation,” (AFA) said.
(AFA) has postponed plans to create Transavia subsidiaries in Europe (outside France and the Netherlands). A comprehensive negotiation and explanatory process with (AFA) and (KLM) unions will be set up as early as September 25.
(AFA) said the expansion of Transavia (TAV)/(TVF) in France is vital for (AFA) to defend its position at Paris Orly Airport. The project was presented to the unions of each staff category over a year ago, but had not been finalized. The pilot unions’ demand to use (AFA) pilots (FC) on the (TAV)/(TVF) network, employed under (AFA) conditions (and to replace the existing 44 Boeing 737s with Airbus A320s) would inevitably lead Transavia France (TVF) to failure, (AFA) said.
The compromise solutions proposed by management have all been rejected. “To remain in the race in Europe, we have no alternative than to rapidly expand Transavia (TAV)/(TVF). We are now taking every measure to explain and accelerate its growth out of France. The Air France (AFA) - (KLM) Group is reaffirming its aim of reaching a fleet of more than >100 Transavia airplanes by 2017,” de Juniac said.
(AFA) on September 23rd expects to operate 48% of flights. On September 22nd, it operated 41% of flights.
Air France (AFA) announced late Wednesday, September 24th it will “immediately withdraw” the Transavia Europe (TAV) project in a proposal to end the 10-day pilot (FC) strike, which is “heavily penalizing” (AFA), its staff and customers. In view of the concession, management has called on pilots (FC) to “return to work immediately.”
In addition to withdrawing Transavia Europe (TAV), Air France (AFA) said it will further develop Transavia France (TVF) “in competitive economic conditions and accompanied by the safeguards as discussed in the negotiations so far.”
According to an Air France (AFA) statement, “This balanced proposal meets the unions’ requirements by providing a renewed guarantee that there will be no relocation. It preserves the Transavia (TAV) development project, a ‘made in France’ solution to face the competition from foreign low-cost carriers (LCC)s and conquer this rapidly expanding market.” The statement went on to say the proposal “meets the needs of employees who want their company to get back on track” and “enables us to find an immediate outcome to this destructive conflict.”
(AFA) - (KLM) Chairman & (CEO), Alexandre de Juniac and (AFA) Chairman & (CEO), Frédéric Gagey jointly stated: “Our Transavia (TAV) project is a 100% pro-France project. It is about developing Transavia (TAV) to encourage growth in France and quickly create more than >1,000 jobs in France (including 250 pilot (FC) jobs). With the withdrawal of the Transavia Europe project, there is now no reason to strike, because there are no longer any concerns about relocation. We therefore call on the striking pilots (FC) to return to work immediately.”
November 2014: The Air Lease Corporation (ALC) has placed an order for (CTT) Systems’ Zonal Drying Systems to be installed in four Transavia Holland/France (TAV)/(TVF) Boeing 737-800NGs. The systems, which eliminate condensation in the airplanes, are scheduled for delivery during 2015.
December 2014: Air France (AFA) pilots (FC) have voted in favor of a new strategy for leisure arm Transavia France (TVF), which will partly replace the group’s thwarted attempt to create Transavia Europe. “We welcome the positive outcome of this consultation, which puts an end to a period of uncertainty,” (AFA) Chairman & (CEO), Frédéric Gagey said.
Part of (AFA)’s "Perform 2020" plan had been to create a third leisure unit (Transavia Europe) which would operate alongside Transavia France (TVF) and Transavia Netherlands (TAV), but (AFA) - (KLM) ditched the idea after a long and costly strike.
(AFA)’s pilots (FC) have now backed a tentative “draft development agreement” struck in October. Under the deal, over the next five years, Transavia France (tvf) will grow from 16 airplanes this summer, to 21 in summer 2015 and 37 Boeing 737s by 2019.
At the release of (AFA)’s third-quarter results last month, (AFA) - (KLM) (CFO), Pierre-François Riolacci said the shift to 21 airplanes “is a big number,” which will require careful commercial management to make sure it does not damage yields. This winter, Transavia France (TVF) will add +56% capacity.
The solution also allows for “integrated career management” for pilots (FC) at (AFA) and Transavia (TAV)/(TVF), including a joint seniority list and secondments between the carriers. This will help tackle overstaffing at the mainline carrier. (AFA) said more than >200 (AFA) pilots (FC) have already volunteered to fill 72 positions available at Transavia France (TVF).
(AFA) said 53% of its pilots (FC) approved the agreement. Its pilots’ union (SNPL) also backed the deal, with 60% voting in favor of the proposal. (SNPL)’s council is expected to approve the result during a subsequent meeting.
Transavia France (TVF) and Transavia Netherlands (TAV) added +8.3% overall capacity in the third quarter, driven mainly by (TVF), which grew +21.4%. Traffic rose +6%, and average load factor dipped -1.9 points to 91.8% LF. This produced a +7.6% increase in revenue, taking the total to €427 million/$531 million, resulting in an operating profit of +€62 million, —€4 million lower than the prior year. Unit revenue was down -0.6%, but up +0.5% in France, despite the rapid increase in capacity.
Over the first nine months of 2014, the two Transavia units (TVF)/(TAV) added +6.9% capacity, but this was met by +6.5% traffic growth, pushing average loads down -0.4 of a point to 90.3% LF and unit revenue down -0.8%. Revenue was up +5.9% to €861 million, while unit costs fell -0.7%. This produced a -€2 million operating loss for the nine-month period, -€14 million worse than the comparable period, which the group said was caused by the rapid ramp-up of Transavia France (TVF).
May 2015: 2 737-8K2 (41332, F-GZHT), Air Lease (ALE) leased and (44567, F-GZHQ), Sky High leased.
July 2015: transavia.com France (TVF) launched three new destinations from Paris Orly (ORY) starting on July 2 with services to Casablanca (CMN) and Tirana (TIA). Both will operate thrice-weekly using (TVF)’s 737-800s, with services to Casablanca facing direct competition from Royal Air Maroc (RAM) (40x-weekly) and Jetairfly (TUB) (daily). On July 3, (TVF) commenced operations between the capitals of France and Poland. Services to Warsaw Chopin (WAW) will be flown 3x-weekly, also using (TVF)’s 737-800s. Although the 1,366 km sector will not face any direct competition, the city pair will face indirect competition in the form of Air France (AFA) and (LOT) Polish Airlines, who both operate to Paris CDG from Warsaw Chopin.
August 2015: August 2015: "Dutch part of Transavia (TAV) dominated by routes to Spain; new services to Germany and Cyprus celebrated in 2015" by www.anna.aero Airline Analysis, August 25, 2015.
Air France (AFA) (KLM)’s in-house low-cost carrier (LCC) subsidiary, Transavia, operates under two separate codes. The Dutch-based airline (TAV) has HV as its code, while the Paris-based operation (TVF) has TO as its (IATA) designator. While (TVF), the French part of the business has plans to grow its fleet from 14 to 40 aircraft by 2020, the Dutch part is seeing relatively modest growth. In 2014, the two carriers handled 9.9 million passengers, of which the Dutch part was responsible for 6.8 million, an increase of around +5% on the previous year. In the first seven months of 2015, according to Air France (AFA) (KLM) traffic statistics, Transavia (both parts) has carried 6.1 million passengers (an increase of +9.8%) at a load factor of almost 90% LF.
Scheduled seat capacity for Transavia (HV) grew significantly between 2010 and 2014, though this is somewhat misleading. The airline’s growth was actually much slower during this period but a significant part of its operations were charter flights, which have gradually been phased out, or converted to scheduled services. This transition appears now to be almost complete and scheduled seat capacity in 2015 is actually expected to fall slightly, by around 2%.
As a European leisure airline Transavia (HV) suffers from significant seasonality. As a result, airplanes and crews ((FC) & (CA)) are often leased out to other airlines during the winter season. Comparing 2015 with 2014, most of the capacity cuts for the year appear to have taken place during the first quarter of the year.
In the first week of September, Transavia (HV) is operating 461 departures from its Dutch airports; 250 from Amsterdam, 108 from Rotterdam, 92 from Eindhoven, eight from Groningen and 3 from Maastricht Aachen. In total 54 destinations are served from Amsterdam, 20 from Rotterdam and 18 from Eindhoven. According to the latest Air France (AFA) (KLM) annual report, Transavia (TAV)/(TVF) as a whole has 9 149-seat 737-700s and 37 189-seat 737-800s. Earlier this year, 20 737-800s were ordered to support Transavia’s rapid growth in France (TVF) and development in the Netherlands (TAV).
December 2015: Air France (AFA) - (KLM) has appointed Nathalie Stubler as the next (CEO) of Transavia France (TVF), succeeding Antoine Pussiau who will become (AFA) - (KLM) Senior VP Asia Pacific.
The changes, which take effect from February 1, 2016, will also see Patrick Roux (who is currently (AFA) - (KLM) Senior VP Asia Pacific) become (AFA) - (KLM) Senior VP Alliances.
Since September 2014, Stubler has been (AFA) - (KLM) Chief of Staff & Group Secretary for (AFA) - (KLM)’s executive committee. Her background includes roles as Head of Revenue Management at Air France (AFA) and Senior VP Network Strategy for the group.
“Nathalie Stubler will continue Transavia (TVF)'s development in France, notably to increase its profitability and the expansion of its operations, while promoting synergies with Transavia Holland (TAV),” (AFA) - (KLM) said.
Pussiau has headed Transavia France (TVF) since 2013.
Transavia France (TVF) operates around 100 routes and is aiming to carry 6 million passengers in 2016, 3x- the number it handled in 2012.
January 2017: 737-8K2 (30650, F-GZHG), ferried Norwich to Amsterdam and returned to TransAvia France (TVF).
May 2017: 737-8K2 (62156, F-HTVG), ex-(N1787B) delivery.
Click below for photos:
TVF-737-800 - 2012-12 -
2 737-8GJ (CFM56-7B26) (2267-34901, /07 F-GZHA; 2309-34902, /07 F-GZHB), (ROJ) LSD 2007-06. WITH WINGLETS. 186Y.
8 737-8K2 (CFM56-7B27) (2583-29650, F-GZHD, 4/08; 2534-29651, F-GZHC, 2008-03; 2615-29678, F-GZHE, 2008-05; 2946-29677, F-GZHF, 2009-06; 30650, F-GZHG, 2017-01; 41332, F-GZHT, 2015-05; 44567, F-GZHQ, 2015-05;2156, F-GZHG, 2017-05), EX-(DAL), (BBB) LSD. 29678; RTND & LST (MIH) 2009-01. 29677; LST (TAV) 2009-06. 29678 RF (MIH). WITH WINGLETS. 186Y.
2 737-85H (CFM56-7B26) (178-29444, /99 F-GZHV; 186-29445, /99 F-GZHN), (STR) LSD 2007-04. WITH WINGLETS. 186Y.
1 +1 ORDER 737-86J (CFM56-7B) (37778, F-GZHJ), (GEF) LSD 2013-04, WITH WINGLETS. 186Y.
Click below for photos:
TVF-1-ANTOINE PUSSIAU INTERVIEW-A
TVF-1-ANTOINE PUSSIAU INTERVIEW-B
MS NATHALIE STUBLER, CHIEF EXECUTIVE OFFICER (CEO) (2016-02).
Nathalie succeeds Antoine Pussiau, who became (AFA) - (KLM) Senior VP Asia Pacific. She has been (AFA) - (KLM) Chief of Staff & Group Secretary for (AFA) - (KLM)’s executive committee. Her background includes roles as Head of Revenue Management at Air France (AFA) and Senior VP Network Strategy for the group. She will continue Transavia (TVF)'s development in France, notably to increase its profitability and the expansion of its operations, while promoting synergies with Transavia Holland (TAV).
ARNAUD NERON, DIRECTOR OPERATIONS & QUALITY.