The ninth day of the strike and the stalemate continues, the collateral damage is significant and covers the whole economy airport
The standoff at Air France on the project for the low cost subsidiary Transavia continues. © ANADOLU AGENCY
Between 15 and 20 million euro. This is the cost, all the days, the strike by Air France pilots. The management has revised the figure initially estimated to be between 10 and 15 million euro. The update is due to claims of arriving passengers and following a loss of more revenue than expected. The real impact on EBITDA, EBITDA will be known at the end of the month and quantify the degradation of the accounts of Air France-KLM.
The cost of the strike is assessed, first, in terms of loss of revenue. It is related to passengers who are reimbursed for tickets and traveling with another airline or TGV. Please note that cancellations also generate a loss of revenue in the freight sector, as the holds of long range aircraft are extensively involved in the turnover of flights. A passenger who has postponed his trip at a later date is also a loss for the company, because, given the high load factor (89% in August) airplanes, will occupy a place that could be sold.
With the loss of revenue, in addition to compensation for legal or business offered by the company. When a flight is canceled if the passenger has not been warned, compensation may vary between 250, 400 and 600 depending on the distance of the trip (less than 1 500 km, between 1 500 and 3 500 km, more than 3500 km). Like hundreds of thousands of SMS were sent to passengers and almost 7,000 employees mobilized to find alternative solutions.
Charter € 10,000 per hour
Diversion of passengers on board an aircraft of a competitor via Frankfurt (Lufthansa), London (British Airways) and Madrid (Iberia), etc., it remains an expensive solution, because the tickets are purchased at full price. This is why a true airlift was maintained between Roissy-CDG and Amsterdam with A321, the longer version of the medium-haul Airbus with 221 seats. This allows you to route long-haul passengers who borrow then KLM flights from Amsterdam in connection with the world. This is an anti-crisis weapon Air France-KLM.
Another solution is to use the large shared with partner airlines negotiated rates that apply upstream and reasonable Aeroflot to Moscow flights for Delta-American Air Corsica Corsica, etc. In such a situation, the 'art of good choices (or less worse) is crucial. Hire other companies is expensive (from € 10,000 / hour jumbo). Have 150,000 for a round trip transatlantic. This remains limited due to the lack of available capacity at this time of year. Many large companies are in fact mobilized to carry Hajj pilgrims to Mecca. So we can count on the fingers of one hand the daily paper from the beginning of the strike Air France. The Paris-Montreal provided by a Boeing 747-400 Corsair is the main card.
Fuel savings with the main pilot salaries
Expenditure items also appear on the company's fixed costs and capital costs and depreciation of aircraft. A 777-300ER, the heart of the Air France fleet, which represents a little less than a million dollars a month in interest expense, almost 25,000 Euros per day. And there are 64 in service. Medium-haul A320 cost less, nearly half.
Side "savings", as well as pilot salaries are not paid (15-20% of the ticket price), we find the account of the fuel. The price of a tonne of kerosene varies airports, fluctuates with the local traffic, so that the flow of oil, local taxes and the cost of routing. Counting thousands of euro per tonne on average. A medium-haul aircraft consume two tons per hour.
Other budget items frozen, maintenance fees and air navigation. The latter is increasingly in charge of the flight time. Other variable costs are saved as (meals on board), landing fees, airport transfers, the services provided throughout the care plan by businesses ground handling (cleaning, baggage loading, etc.). Except in the case of an employee of Air France and monthly paid staff. The flight attendants (cabin crew) continue to receive most of their pay, even if you do not fly.
Ten million less for taxis
The collateral damage is considerable. On average, 270,000 passengers per day in Roissy-CDG and Orly. They spend in shops, bars, restaurants and other services at € 20 each. With one in two flights canceled, it is estimated that 30% decrease in the number of passengers. Finally, in eight days, fifteen million who will miss the coffers of the merchants. A € 120 round trip race Roissy-CDG, we can also calculate the deficit for the taxi, in the order of € 10 million in a week. Airport parking lots are also experiencing these unexpected losses.
Airports living in part due to the aircraft landing fees, but also services for passengers, parking lots, etc. When an Airbus A380 raises the wheels at Paris-CDG, the fee is about 1,700 euro, which is proportional to the mass (560 tons) . If you just parked during a strike, for example, have € 180 per hour. But without the flight, the entire economy of the airport is upset and a lot of jobs at risk.