* Advantages: for conclusion, we can easily summarize the advantages of AF and its competitor EJ. For Af, it’s the products and services differentiation. And for EJ, it’s the low cost strategy. * Limits of AIR FRANCE: * Price war: In general, the price of AF tickets was relatively expensive and therefore accessible to a minority. But today, the airline is more popularized and is no longer the privilege of a minority. So the price has become the key factor for choosing between companies, especially with young people who have less income but a strong passion for travel. * Many competitors (direct and indirect): The direct competitors of AF in Europe are the other traditional companies like Lufthansa, British airways, Alitalia… Besides, the low cost companies like Easy Jet, Ryanair making offers very interesting, sometime only 30 euro a ticket.
Especially, when TGV offer the train to different destinations in France in less than 3 hours, it’s become an indirect AF’s competitor.
So, AF must act quickly if it doesn’t want to lose the clients. * Solutions for AIR FRANCE: * Launch a “mini” business class: The economic crisis severely impacts the airline. Air France in particular recognizes the significant degradation of businessmen choose from Affairs class to economic one. To catch again this client, the company launched in late October, a new class called Premium Traveller. It sits between business class and the economy cabin. It offers businessmen a little more comfort than the economy cabin with a cheaper price than the business class. * Create a new low cost subsidiary:
To combat against low cost airlines, one of the ideas proposed is the creation of a new low-cost subsidiary, although the group already owns Transavia. * Reorganize the domestic routes: * To reduce its rates, often prohibitive compared to the competition, the French airline will have to use the same techniques as the low cost.