Air France (AF, Paris CDG) will consolidate its short-haul operations with those of its regional subsidiary, HOP! (France) (A5, Paris CDG), with effect from early next year. HOP! Air France, as the new operation will be known, will launch during the Summer 2015 season and aims to recover profitability in the short-haul market for Groupe Air France within three years.
Established in March 2013, HOP! was created to allow Air France to better compete with low-cost airlines on the domestic French and regional European fronts. At present, it includes HOP!-Airlinair, HOP!-Brit Air, and HOP!-Régional.
However, Frédéric Gagey, Air France Chairman and CEO, said the decision to again reorganize the Group's operations had been taken on the back of a study carried out and presented to the airline's board in June of this year. The study identified high speed rail, automobiles, and budget carriers such as Ryanair (FR, Dublin International) and easyJet (London Luton) as the sector's biggest threats.
"We need to restructure our company to be even more responsive, market-oriented and close to our customers," he said. "HOP! Air France is a response adapted to the specific characteristics of the short-haul carrier market and the travel needs of our customers. I am counting on the efforts of all staff to achieve the ambitious targets for this business."
In terms of structure, HOP! Air France will consolidate Air France's Point to Point teams in Paray Vieille Poste and HOP!'s teams in Rungis into a single centre in Montreuil, close to French market sales agents. There will be no modification, transfer of employment contracts, or transfer of the teams based at Paris CDG or elsewhere in France.
