FRENCH DOMESTIC carrier Air Inter is to be renamed Air Inter Europe on 1 January 1996, as part of the Air France Group's reorganisation plans.

The airline will begin flights to several new destinations in Europe, the number increasing with the take-over of Air France's European routes in early 1997. The renamed Air France International will then become a purely long-range international carrier, although it is expected to continue serving certain European destinations.

The move is meant to prepare the Group for full European air transport liberalisation on 1 January 1997 - the point at which non-national airlines are free to operate routes within other European Union countries.

Air Inter Europe will operate around 120 aircraft, and transport more than 26 million passengers a year, with an expected turnover of Fr20 billion ($100 billion). Despite its attempts to reduce operating costs and become more competitive, it has been suffering from the effects of reduced traffic since French airlines were allowed to compete on some internal routes.

The reorganisation plan has come under considerable pressure recently, with the workforce striking against the new working conditions called for by Air France President Christian Blanc.

Source: Flight International