| Subject: | Re: Three questions for Air France on Paris - Ajaccio monopoly |
| From: | "Kingfisher" |
| Posting date: | 21-03-2006 |
| Content: | |
Posted with the Express Permission of Kingfisher enterprises, (c) 2006.
easyJet, Europe's leading low-fares airline, today announces additional
flights from Paris Orly to Pisa this Summer. These flights will replace the
Paris Orly-Ajaccio route that easyJet was forced to drop last week due to
an Air France monopoly.
Following easyJet's criticism of the Air France monopoly on routes that
enjoy a so-called 'Public Service Obligation' (PSO) status such as Paris-
Ajaccio, which was widely reported in the French media, Air France reacted
to easyJet's press release of 16 March. The airline argued that easyJet's
statement was "irresponsible" and easyJet had no right to criticise its
monopoly on the route, as easyJet could have participated in the tender.
François Bacchetta, easyJet Country Manager France, was stunned by Air
France's response:
"How Air France can suggest that we should also apply for subsidies to fly
the 12th most popular route in France is beyond me. Do they really think
there is nothing better you can do with public money than handing it over
to an airline to fly a route which many airlines would be happy to fly
without subsidies?
While there are some routes where a PSO status is appropriate, especially
to oversee territories, the list of PSO routes should be revised. Today
airlines are able to operate a route such as Paris-Ajaccio under market
conditions while offering cheaper fares for consumers. Air France tries to
scare people into believing that no one would operate this route without a
PSO and people on Corsica would be cut off, but that is just absurd.
We would therefore like to pose three questions to Air France:
1) How much money does Air France receive from the French state for the
operation of Paris-Ajaccio?
2) Why is Air France not able to operate one of the most popular routes in
France under market conditions?
3) How can it be in the interest of the consumer if competition is banned
on some of the most popular domestic routes?"
Under the terms of the tender (2005/C 159/14, published in the EU's
official journal of 30 June 2005), an airline can receive up to ?33 per
passenger for services between Paris and Corsica. Given that Paris-Ajaccio
is the 12th popular route in France with 450 000 passengers annually, this
means that Air France could pocket a maximum of ?14.85m per year just for
this route.
In its statement, Air France also confirmed that its lowest return fare on
this route (?156) is more than double that of easyJet's starting fare of
?70. Les Echos on 13 March reported a starting fare for Air France of ?263,
a figure that was quoted (with its source) in the easyJet press release.
Last week easyJet announced that it could not operate the route Paris Orly
- Ajaccio, as it is blocked by an Air France/CCM monopoly. easyJet
subsequently criticised the Air France monopoly on popular routes in a
press release of 16 March. Air France reacted in a statement that was
published on the Air France corporate website on 17 March with the title "
Desserte de la Corse : assurer la continuité territoriale, garantir la
qualité et la pérennité des liaisons aériennes". (Deserting Corsica:
Assuring the PSO and Securing continuation and quality of service)
On 7 March, easyJet announced further expansion in France with five new
routes and new airports (Bordeaux, La Rochelle). The new routes are Luton
to Bordeaux starting on 29 June, Bristol to Toulouse starting on 21 July,
Marseille to Bristol starting on 22 July, as well as a four-weekly flight
from Bristol to La Rochelle, which begins on 21 July.
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