The long haul markets from Europe have recently seen a number of new brand names, particularly in the value end of the range, including Norwegian, Eurowings and IAG's new brand – Level. The successful establishment of a new brand will require investment, and will take some time.
Boost also to be Air France-KLM's digital laboratory
Air France-KLM group CEO Jean Marc Janaillac has also identified another role for Boost, "an innovation laboratory for the whole group in terms of processes and customer experience".
Air France-KLM's recognition of the importance of a digital strategy is important, and welcome in today's digital world. However, it is alone among Europe's five largest airline groups in not having a distinct and dedicated digital innovation incubator/accelerator programme.
See related report: Europe's big five airline groups embrace disruption via digital innovation; some more than others
IAG has its Hangar 51 accelerator programme in partnership with L Marks, an innovation specialist and early stage investor, and has recently invested in two new technology companies. easyJet has a partnership with the incubator Founders Factory and has selected two travel startups for its accelerator programme.
The Lufthansa Group established its Innovation Hub in 2014 and started a new partnership with the Californian startup investor ‘Plug and Play’ in 2016. While these three groups chose external partners, Ryanair has its in house Labs team, set up in 2014.
By contrast, Air France-KLM's decision to assign the role of digital laboratory/incubator to Boost gives the perception that it does not view this key strategic area with the same importance as do its leading European peers. The new Boost airline is yet to launch operations, while Europe's four other large airline groups are pressing ahead with what look like their more concerted approaches to digital strategy.
Air France-KLM's ambitions for Boost are limited by its pilots
Air France expects Boost to generate similar unit revenue to that of the mainline operation. It will have the same customer satisfaction targets as Air France, which are to improve its net promoter score from 25 at the end of 2017 to 50 at the end of 2020.
For an unknown brand, particularly one that is targeting a younger demographic, these aims could present a challenge.
On the cost side, its targeted unit cost differential to Air France would put it among the more efficient legacy/full service operators, but not among the LCCs. This should be a minimum aim for the whole group.
This chosen model for the Boost project, between a low cost airline and the existing Air France product, may partly reflect the reality that the group's hands are tied by pilot agreements when it comes to setting up a true low cost long haul operation.
If done properly, the new airline should provide Air France-KLM with an opportunity to do things differently, not only in terms of better cost efficiency, but also in terms of fostering a culture of innovation.
However, the group's ambition for Boost is limited in scope, and it will always have to keep one eye on Air France pilots before any further development of the business. This half way house has many precedents - few of which succeeded.
die hele "visie" is opgehangen aan het welslagen van "Boost" en het omzeilen van alle beren op de weg.
verder is juli DE stakingsmaand voor de Fransen sinds de bestorming van de bastille en VOOR de halfjaarcijfers 28juli weten we al weer veel meer.