Air France (AF, Paris CDG) has named its nascent low-cost carrier subsidiary Joon (France) (Paris CDG). As previously reported, Joon will commence operations from its Paris CDG hub later this autumn. Initial services will cover the medium-haul sector with long-haul flights to begin in summer 2018.
“The creation of a new airline is an historic moment in many ways. Joon is another step in the deployment of the Trust Together strategic project," Franck Terner, CEO of Air France, said in a prepared statement. "Its creation will improve the profitability of the Air France Group, enabling it to reduce its costs and ensure the sustainability of its business model. Jean-Michel Mathieu, who has taken part in the development of this new airline since the start, will becomes its CEO. With all the Group's teams, we are concentrating our energy on the successful launch of Joon."
Air France has been developing Joon as part of its Boost project aimed at regaining the carrier market share lost on ultra-competitive routes while at the same time appealing to new customer segments, specifically the millennial market. Unit cost savings will be achieved through recently approved revised cabin crew labour agreements as well as through the introduction of Buy-On-Board facilities.
Operationally, Joon is a virtual carrier wet-leasing capacity from Air France. Joon will employ six A321-200s initially growing to eleven by summer 2018. In summer 2018, it introduces its maiden long-haul aircraft in the form of three or four A340-300s. Thereafter, the first A350s will arrive in winter 2019. By summer 2021, the mix is expected to include six A320s, twelve A321s, and ten A350s.
In terms of network, Joon's medium-haul operations will draw feed from several hubs while for the long-haul, it will serve Asian destinations including some of Air France's loss-making routes. In fact, 70% of Joon's long-haul business will be made up of Air France's loss-making long-haul routes, with the remaining 30% built on newly developed destinations.
