Originally Posted by nicolas75

After months of degradation, do you see the beginning of recovery?
(...) In July and August, we had satisfactory occupation rates, equivalent to 2007 despite traffic down by 5% (...). But the seat revenue is down by 15% compared to 2008 and, although this degradation seems over, it does not mean that profits are soaring. (...) Although we expect a slight improvement in revenue by the end of the year, we know it will not soon return to its 2008 level.

Is Air France-KLM is more affected than its competitors?
No, we're not the most affected. Small companies that do not have a powerful hub are much more affected than we are. Without traffic, they must cut direct lines, allowing Air France, as Lufthansa and British Airways, to increase their market shares. Moreover, if we compare our RASK, which is the true indicator of performance, we see that it has declined less than our major competitors and the industry as a whole.

But your loss is heavier than other major European airlines
This is related to the size of Air France-KLM. In the cargo division, where activity fell by 40%, we are the largest global operator. The collapse of the activity (- 20% at Air France) has forced us to reduce our capacity by 15%. We are also penalized by our oil futures contracts. (...) Overall the loss of oil futures contracts and cargo division amounts to 400 million to 496 million euros. (...)

Does the launch of premium class on long-haul flights respond to this new situation?
The premium class, which is halfway between the business class and economy class, was designed before the crisis. We originally wanted to encourage some of our customers flying economy class to go upmarket. But this offer is timely to provide an alternative for customers who no longer want or can travel in business class. Ultimately, we believe that this new premium class could bring us up to two points of revenue in the year.

Is your traditional business model based on business class travellers challenged?
Adjustments are necessary, but we do not believe that the business class will have to disappear. The availability of a seat-bed is a real advantage, which can have its economic justification when travellers have to make long flights. The efficiency of the hub that enables the use of more productive large aircraft and the need for physical comfort are two fundamentals that ensure the future of our economic model of long-haul flights.

On medium-haul network, is the business class still justified?
Short-and medium-haul flights customers have become very price sensitive and the "statutory" business class is now abandoned by most of our customers. In addition, passengers do not want to pay for services they do not need. Some services, such as the ability to check-in two bags are included in our prices, even if some do not use them.
We will therefore try to adapt by providing more optional choices. We'll go from the all-inclusive service to à la carte service to better meet the expectations of our customers. The ability to modify the ticket could also lead to fees. We are still studying these new options and we will take a decision in late October, for operational effects starting early 2010.

Does this mean that you switch to a low cost model on short and medium distances?
We're not going to "low cost", but towards the passenger. We will continue to offer a traditional service, even if we make some adjustments. Thus, we do not intend to cut the business class. There are still passengers who want more comfort.