French carrier Air Lib is rapidly expanding its low-cost operations and bidding for new routes into Africa as the loss-making airline seeks to define a strategy that will ensure its survival.
Air Lib, which was established out of the operations of Air Liberte and AOM in September 2001, began transferring its French domestic routes to a newly formed low-cost arm Air Lib Express in March. Since then it has launched routes from its Paris Orly base and between domestic regional airports, and at the end of October started its first international services to Italy.
This sees Air Lib Express Boeing MD-83s operating from Orly with three times daily service to Rome and Milan, and once daily to Venice and Pisa. Prices start from c29 ($28) one way. Since it began, Air Lib Express has been averaging 75% load factors on routes from Orly, and the low-cost arm has been a successful operation, it says.
Air Lib itself is focusing on expansion into Africa. Routes started earlier this year to Algeria, serving both Algiers and Oran, are going well. Another twice-weekly MD-83 service to the Libyan capital Tripoli, which had been delayed, also began on 8 October.
The airline is bidding for a much larger African network. It is discussing with the French government whether it can drop or scale back its loss-making routes to French territories in the Caribbean and Indian Ocean and expand into Africa, which it views as having greater profit potential, particularly with the demise of Air Afrique. Chief executive Jean-Charles Corbet has warned that the airline may have to shed 40% of its 3,200-strong workforce if it cannot make the transformation.
Air Lib has won the approval of the French Civil Aviation Council, which awards route rights, for services to Burkina Faso, Mali, Ivory Coast and Senegal, but final approval needs to be granted by the French Ministry of Transport.
The airline will also seek further route rights to Benin, Niger, Madagascar, Central African Republic, Mauritania, Guinea and Republic of Congo, says a company spokeswoman.
This year Air Lib expects to carry 3.3 million passengers, a steep drop from the days when AOM and Air Liberte operated separately. In 1999 AOM carried 3.6 million passengers while Air Liberte carried 4.4 million.
As it makes a case for African routes, in November Air Lib is due to repay a c30.5 million state bridging loan to assist the restructuring process and attract new investors. Another outstanding financial issue is the court case in which Air Lib claims it is owed c60.4 million by former shareholder Swissair Group.
Source: Airline Business
