While the development of the French branch of Transavia, the low-cost subsidiary of the Air France-KLM group, was until now blocked by the pilots of the powerful SNPL UnionThe group announced last Wednesday that an agreement had been reached with these pilots’ unions to boost the development of the group’s low-cost airline.

Major sticking points and ridicule

Two important locks will be broken:

1. The number of aircrafts: If the low-cost airline’s fleet is currently limited to 37 aircrafts, it is because this was the maximum number negotiated with the pilots’ unions – From now on, this number will no longer be limited, and we can imagine that the airline will be able to recruit young pilots externally rather than having to systematically undergo the sometimes large wage bill of the parent company ;
2. Bases: The group’s press release suggests the development of alternative bases to those at Orly and certain provincial airports. Stay Tuned.

The ridiculous thing was, for example, refusing access to the lounge even to code-share flights with Air France, and limiting the earning of miles, hoping that loyal customers would stay on the Premium airline… But try to go to Seville or Heraklion with Air France

Trying to catch up with the competition

Beware, in low-cost, there is competition and competition.

Namely the king of low-cost in Europe, EasyJet, and the king of ultra-low-cost, Ryanair. They are independent and have their own strategy and cost structure: it is more a question of preserving the group’s interest and market share than of attacking them on their routes or aligning with their cost structure.

But there are also the low-cost airlines attached to the legacies, such as Vueling, Level or Eurowings. And it is on this segment that Transavia must position itself, with stiff competition:

• Eurowings has replaced Lufthansa on many routes, and today has a fleet of 159 aircraft;
• Vueling has reached 122 aircraft, plus 12 at Level.

Transavia France + Netherlands has reached 55 aircraft, less than half the number of their smallest competitor… The road is therefore long and the markets are already saturated with offers.

Developing synergies with Air France

Transavia is mainly based at Orly, like all Air France short-haul flights. This is the perfect opportunity to organize connecting flights between Air France and Transavia, to multiply code-shares and to create a seamless experience. An experience made possible by the new Orly, which connects (or will connect) all the terminals.

EasyJet and Vueling already allow to buy connecting tickets on their website, a new feature for low-cost airlines.

Bottom line

Good prospects for the smallest player among the European low-cost carriers. Let’s see what the French-Dutch group will do with it.

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