Tuesday, 26 May 2020
Air France-KLM has said it is studying the possibility of using trains rather than planes on certain short routes, the group announced ahead of the general meeting of its shareholders.
As part of its commitment to reducing CO2 emissions, the Franco-Dutch aviation group intends in particular to use more environmentally friendly aircraft and fuel. The use of trains as a fully-fledged alternative for a number of Air France domestic routes is also an option.
The group recently received €7 billion in support from Paris. According to French Finance Minister Bruno le Maire, this aid package is accompanied by the necessary sustainability requirements. The Dutch support, ranging from €2 to 4 billion, is still under negotiation.
After the summer, the company will present an update of its strategy. In its view, there is much to be gained by reviewing the way in which Air France operates its domestic flights, which represented a loss of €200 million last year.
Air France-KLM also expects several airlines not to survive the crisis, leading to a consolidation of the sector. If opportunities arise, the group will also benefit from them, but this is not the case at the moment, it added.
The airline does not expect flights to return to pre-crisis levels before 2022. In order to make savings, the planned investments have been reduced by a third, to €2.4 billion. In addition, operating costs will also have to be reduced.
The Brussels Times