Air France's new low-cost airline, Joon, received a green light from pilots and crew, adding to the growing trend of traditional carriers launching more budget-friendly air services.
The pilots, who approved the agreement, were praised by Air France-KLM CEO Jean-Marc Janaillac for their "spirit of responsibility."
Legacy carriers are seeing increased competition from Gulf carriers as well as long-haul budget airlines such as Wow and Norwegian. Air France hopes that its new budget offering will help it regain market share on competitive routes among both business and leisure travelers.
Many other traditional carriers have already launched, or also have plans to launch budget subsidiaries, in order to compete globally. Lufthansa has Eurowings and British Airways' parent company, IAG, has launched Level.
France's trade union affirmed the deal this week with 78 percent approval. Cabin crews also agreed to the new deal, clearing the way for Air France to move forward with the project which is currently known as "Boost."
Air France's human resources department said that the airline has plans to recruit 250 pilots per year over the next three years.
Get to Know Joon
The new airline will target Millennials and be called Joon. It is defined as a "lifestyle brand and a state of mind," says Air France.
"With Joon, we have created a young and connected brand that will give the Group a new impetus," said Dominique Wood, executive vice president brand communications at Air France.
"Designed for our millennial customers, it will offer more than just a flight and a fare, it will offer a global travel experience. We'll provide a further update in September, with more details on the brand's content, products, services, destinations and range of fares," added Wood.
The airline plans to operate the new service on 28 aircraft and save money on new deals with cabin crews and on catering and station activities.
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Service will begin on a fleet of Airbus A340 aircraft, switching to the A350 in 2019, and Air France will operate the new long-haul and medium-haul flights on routes that it currently operates at a loss.
"Competition from Gulf carriers is so fierce that it is really hampering our profitability level," said Jean-Michel Mathieu, CEO of Joon, at an investor meeting in May.
"It occurred to us that trying to recover the profitability on these routes through a cost reduction plan within the Air France mainline seems rather unrealistic. That's why we think the creation of a new entity with a significantly lower cost structure is the only way to sustain our presence on these markets," Mathieu added.
In addition to cost savings, Air France sees its new brand as a way to capture Millennial market share, a market that the airline is currently underperforming in. Air France estimates that Millennials are 38 percent of passengers in the market but that it is only capturing 20 percent of them.
The airline will offer a different experience than that onboard Air France, but it will be in line with Air France standards and not a "downgraded" experience.
According to the Center for Aviation, there will be new onboard catering, a wider range of inflight entertainment, a strong social media presence and more.
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