Julian Moxon/INTERLAKEN
Air France is to merge three French regional airlines into a single entity in a move it says is intended to give it "more control over the domestic market".
Regional Airlines, Flandre Air and Proteus, all 100%-owned by Air France, will be merged "to pool their resources, expertise and experience", the carrier announced at the European Regions Airline Association general assembly at Interlaken, Switzerland, 28-29 September. The three will "contribute to setting up an airline under a new identity".
The aim is to group all three in a single location - likely to be Cleremont Ferrand, where Regional Airlines has a fast-growing hub. Regional is based in Nantes, Flandre Air in Lille and Proteus in Dijon. Maintenance bases will be retained, says Air France, and "reinforced to cater for fleet expansion". All three carriers are Embraer Regional Jet operators and have outstanding orders for all versions.
Air France says that "on their own, none of the three have the necessary size or resources to secure their future". Already 100% owner of Regional, Air France financed cash-strapped Proteus' take-over of Flandre Air in 1999 in exchange for a 42% stake in Proteus and the option of taking 100% - which it has exercised. The national carrier also holds 49.8% of another major French regional, Morlaix-based Brit Air.
The move comes as the SAir Group attempts to merge AOM, Air Liberté and Air Littoral into a single French carrier to compete with Air France. This has run into difficulties, however, as the president designate Paul Reutlinger struggles to reconcile the three, experiencing cost control and workforce issues. The merger has been delayed to year-end (Flight International, 12-18 September).
• In another regional airline consolidation, Swedish carrier Skyways will merge three of its four affiliates - Highland Air, Airborne and Air Express - leaving Flying Enterprise independent. "We have been compelled to combine these airlines because of high costs and the heavy impact of JAR OPS and other regulations," says Skyways managing director, Jan Palmer.
Source: Flight International
