Air France has posted the best annual results in its history on the back of growth at its Paris Charles de Gaulle (CDG) hub. British Airways, meanwhile, is reportedly pressing for a third runway at London Heathrow, CDG's main European rival.
Air France posted a 34% increase in operating profits to FFr2.35 billion ($335 million) on a turnover of FFr67.7 billion (up 13.5%). Net profit rose 42%, to FFr2.32 billion, despite unfavourable exchange rates and higher fuel costs.
The carrier's president, Jean-Cyril Spinetta, says it bucked the European trend thanks to controls on unit revenues, cash from the Delta Air Lines alliance, FFr3 billion in cost savings, and - crucially - growth at CDG. Air France carried 39.8 million passengers in its financial year, with traffic up 12.1%. Load factor grew to 76.1% on an 11.2% capacity hike.
A new terminal dedicated to Air France opened at CDG last year, and another is planned for 2003. A third runway has opened and a fourth is due in 2001, taking passenger capacity from 32 million to 55 million. CDG has already outstripped Heathrow - which had 62 million passengers last year - in movements.
BA's plan is said to call for a third "narrowbody" runway at Heathrow, to take pressure off the present two by handling shorthaul flights. The strip would have its own small terminal. BA has long pressed for a fifth major terminal at the airport, but the project is bogged down by environmental concerns.
Spinetta confirms Air France is ready to sign letters of interest for the Airbus A3XX. "We're thinking of around 10 aircraft", he says.
Source: Flight International
