Air France to sell seats by auction

16 September 2017


Air France to sell seats by auction
Name Code : Rise and fly

Via Challenge.fr we learn that AF is about to introduce a ticket auction for some of its flights system in order to boost the filling rate and the revenue per kilometer of its aircraft in order to boost the filling rate and the revenue per miles of its aircraft  in order to boost the occupation rate and the revenue per miles.

So far the program is not confirmed by the management, however it was disclosed by the unions. The launch is scheduled for December. The target is It's medium-haul business where it's hard for the airline to make a profit.

 

How does it work?

The system would allow the passenger to bid for the seats still free on D-7 of the flight. Its chances of winning depend on the filling rate of the flight and the offers deposited. This auction system would be active up to a few hours before the departure of the flight.

 

Will this work?

From the management standpoint, everything must be done to improve the bottom line and attract customers. Logic.

 

On the other hand, AF will face an uphill battle with the unions.

Why?

There are 2 issues, let's go into details. 

 

As an Airline employee you have perks like flying almost for free (around 10% of the fare), On my last trip to BKK, I met a ground staff worker with AF. He paid for his flight and his son 100€.

 

To the point, unions are afraid that availability will go away with that. You have 2 sorts of staff tickets :

R1: confirmed ticket

R2: you fly only if a seat is available

 

As far as I remember there is a R3 ticket as well but I really forgot the ins and outs.

For me a paying pax comes first. However something must be done to protect those living far from Paris, like MRS, TLS…

Most of the flights I've taken to CDG, I see either a cabin crew or a captain flying to CDG hub for their long haul service. Despite being a staff's choice to live outside and far from Paris, the airline needs to help those relying on that.

 

Given the fierce competition from low cost carriers, it's important to lead and innovate to find new revenue.

Easyjet just announced a new partnership with Norwegian to tap the long haul market. It's a win-win situation given that Norwegian will use easyjet as a feeder like a regular carrier for flights via LGW.

 

That is why I strongly believe that all initiatives must be taken to attract and retain clients.

 

It's a bold move by AF if it is put in motion.

 

Thomas

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