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airilnes
Air France targets more market
share with Joon launch
New subsidiary increases connection capability
by Sarah Cornwell
AIR FRANCE/KLM hopes to grow market share in South Africa, with the introduction of a third brand, Joon, flying Paris –
Cape Town from this month.
New South Africa Group General Manager, Wouter Vermeulen, said a “digitally-orientated” and “innovative” Joon would
provide a different brand experience and increase connections
beyond Paris.
“… On the long-haul side, it is not going to be a low-fare carrier. It is the quality of Air France and the standard of Air France
and we will have pricing that is fitting for the market… for both
KLM and Joon… which means you can fly [from Paris] on Joon
to somewhere in Europe and back on KLM.”
In-flight entertainment will be available on a passenger’s
personal device and will include 3D movies. “It is a brand we
use to bring in new innovation into the airline industry,” he
maintained.
A positive political climate and stronger rand have made a
good first impression on Mr. Vermeulen, who was previously
head of commercial for Air France/KLM in South America.
“It is difficult to compare [markets]… The landscape in terms
of competition is completely different. In South Africa, the
players are very different. There is little traffic to the US and
the Gulf Carriers play a much stronger hub role… where from
South America [their role] is to Asia,” he said.
“The trade market is very
consolidated, which is what
I saw in Chile, Brazil… small
agencies or only a one-man
agency that uses an IATA
ticketing facility of another
company, which works. In
[South America’s] aviation industry there has been strong
consolidation… Particularly
Brazil, there is still room for
development and the market
is not as saturated.”
Mr. Vermeulen said the
group hoped for continued
support from the trade, which he
said booked the lion’s share of Air
France/KLM seats in SA.
“The [Cape’s water crisis] news has
had some traction in Europe but, so far,
it is
more awareness about when they visit the Cape, how they use
the water. We have not seen hesitance of coming to the Cape,”
he said.
Air France/KLM is one of the latest carriers to introduce a
GDS surcharge for non NDC-enabled, non-direct bookings.
However, Mr. Vermeulen maintained the distribution model
provided shared benefits and confirmed the same model for
Joon.
“The reason for NDC is to be able to offer in a standardised
way to the agencies everything we have for sale. Today, through
the GDS, it is not possible to sell… all the paid options that we
have… they have to go through Air France/KLM direct.”
Forward projections are positive, he said, for inbound and
outbound traffic.
“A stronger rand is good for us in terms of leisure activity
and when it comes down to corporate… the better the investor
climate is here, the more we see…”
Mr. Vermeulen maintained: “We are here for the long-haul.
We see the potential… and
bringing another brand
allows us to address the new
segment we might not have
addressed with Air France/
KLM – and that should make
our footprint stronger… The
trade are the most important
and will remain our most
important sales channel. I am
looking forward to working
with them.”
E Pictured: Joon’s Business long-haul seating and
its aircraft livery.
28 Travel Industry Review | April/May 2018