May 17, 2020

Air France profits plunge GDP 330m due to pilot strike

air cargo
Air France
European logistics
Admin
3 min
Air France-KLM has revised its financial forecast
Follow @SamJermy and @SupplyChainD on Twitter.Embattled French flag carrier Air France has announced its third-quarter operating profit plunged 61 perce...

Follow @SamJermy and @SupplyChainD on Twitter.

 

Embattled French flag carrier Air France has announced its third-quarter operating profit plunged 61 percent after a fortnight-long pilots’ strike cost the airline in the region of £330 million in lost sales.

Taking into account the lost revenue during the strike and the knock-on impact of disgruntled passengers staying away in future, Financial Director, Pierre-Francois Riolacci has forcast the impact over 2014 will be in the order of 500 million euros (£393 million).

He said: "We need a few more days to finalise our estimates completely. But we think the impact on the third quarter will be in a range of 320-350 million euros.”

Operating profit was £195 million compared with £505 million in the year-ago period, Europe's largest airline by traffic said in a statement. Sales slumped 6.7 percent to £5.28 billion.

Riolacci said knock-on consequences were harder to calculate exactly but warned there would be an impact both on the last quarter of the year and the first part of next year as Air France, Europe's second-largest airline, battles to win back its reputation.

"We made some savings (like in aviation fuel) because the planes were not flying. On the other hand, we had additional costs; putting passengers up, compensation or buying tickets from our competitors for some of our passengers, which we did not always get at the best price." he said.

Pilots at Air France waged the longest strike in the company's history between September 15 and 28 in protest at the group's plans to expand its low-cost subsidiary Transavia France.

The airline sees the development of Transavia France as crucial to compete in the cut-throat world of aviation which has been revolutionised by the arrival of low-cost operators like easyJet and Ryanair.

But the pilots, some of whom earn up to 250,000 euros per year, were worried their flights could be replaced by Transavia services or that the company would seek to use the cheaper Transavia pilots.

The strike knocked out more than 50 percent of Air France services and sparked political fury, with Prime saying the industrial action was harming the image of France abroad.

Air France-KLM said its passenger figures were down 15.9 percent in September compared to the same month the year before.

The wider group (including Dutch airline KLM, Transavia and Hop!) welcomed 5.7 million passengers aboard last month -- a drop of 16.3 percent compared to 2013.

The financial director stressed however that estimating the cost of the strike was an inexact science.

"It is not possible to estimate precisely how much of this decline is due to the strike and how much is due to the disappointing trend in demand we observed at the beginning of summer and later on," he said.

Air France has since launched an advertising blitz to, in Riolacci's words, "get people back into our planes." The cost of this campaign has been included in the 500 million euro estimate.

For more information, please visit: http://corporate.airfrance.com/en/the-company/

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Aug 4, 2021

DHL Express Invests in Electric Cargo Plane Fleet

DHL
UPS
Logistics
sustainability
3 min
DHL Express has ordered 12 electric cargo planes from Eviation as part of its €7bn decarbonisation and sustainability programme

DHL Express has ordered 12 fully electric cargo planes to supercharge efforts in reducing carbon emissions across its US delivery network. 

The Alice eCargo planes are manufactured by Seattle startup Eviation, and are designed specifically to be configured for either cargo or passengers. The first planes are expected to be delivered to DHL Express in 2024. 

“We have found the perfect partner with Eviation as they share our purpose, and together we will take off into a new era of sustainable aviation,” said John Pearson, CEO of DHL Express. 

The purchase forms part of DHL’s €7bn investment in reducing CO2 emissions by 2030, with a zero emissions target set for 2050.  

“We firmly believe in a future with zero-emission logistics,” Pearson added. “On our way to clean logistics operations, the electrification of every transport mode plays a crucial role and will significantly contribute to our overall sustainability goal of zero emissions.”
 

 

What is Eviation's Alice Aircraft? 

 

  • Manufacturer: Eviation
  • Capacity: 1,200kg
  • Range: 815km
  • Charge time: 30 minutes
  • Launching: 2024


Eviation’s Alice aircraft enable cargo and passenger airlines to operate zero-emission fleets. The plane can be flown by one pilot and is capable of carrying 1,200kg, with a maximum range of 815km. 

The aircraft can be fully charged in 30 minutes, which can take place while the vehicle is loaded and unloaded between flights. Eviation says that, because the aircraft has fewer moving parts - or points of failure - than traditional aircraft, they are more reliable and reduce maintenance overheads and downtime. 

“With Alice’s range and capacity, this is a fantastic sustainable solution for our global network,” said Travis Cobb, EVP Global Network Operations and Aviation for DHL Express. “Our aspiration is to make a substantial contribution in reducing our carbon footprint, and these advancements in fleet and technology will go a long way in achieving further carbon reductions.” 

How Does Alice Compare with UPS’ eVTOLs? 

DHL Express is not alone in electrifying the skies. In April, UPS announced a new fleet of eVTOL (Vertical Takeoff and Landing) aircraft, from Beta Technologies, which will enter service in 2024. 

UPS eVOTL
UPS eVOTL


UPS’ vehicles can carry 635kg with a 400km range and cruising speeds of up to 170mph. The eVTOLs can carry cargo to several short-hops or one long route on a single charge, and are aimed at healthcare organisation, SMEs and businesses in small or remote communities. 

“These new aircraft will create operational efficiencies in our business, open possibilities for new services, and serve as a foundation for future solutions to reduce the emissions profile of our air and ground operation,” said Juan Perez, UPS Chief Information and Engineering Officer. 

The first 10 eVTOLs will be delivered in 2024, with the option for UPS to order up to 150 more. 
 

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