The fashion of Joint Ventures between airlines continues, with Air France, KLM, China Southern Airlines and Xiamen Airlines forming a single joint venture from the existing joint ventures.
The four airlines are aiming to improve their link between Europe and China, by optimising connections and transfer times.
For Air France-KLM Flying Blue customers, Flying Blue miles can be earned on all flights covered by the joint venture.
And there’s a lot at stake to get this joint venture right – least of all Air France, KLM, China Southern and Xiamen Airlines carry some 1,250,000 passengers between Europe and China on their joint operated routes.
Beyond this, the four airlines closely cooperate in other areas – such as airport handing catering and maintenance.
Onto the quotes, with Pieter Elbers, KLM President & CEO, stating
“In 2016 we celebrated 10 years joint v enture between KLM and China Southern, today we merge the existing two joint ventures into one.
I’m proud of this joint venture because it serves to further intensify Air France-KLM’s interests in China. Joining forces offers our customers an extensive, seamless network within China and Europe.”
Patrick Alexandre, Executive Vice President Commercial, Sales and Alliances, Air France-KLM added
“We are proud to pursue our cooperation with China Southern and Xiamen Airlines by combining the existing joint-ventures. Our single joint venture will at the same time preserve the benefits our customers enjoy and safeguard Air France-KLM’s position in China.”
The fashion of joint ventures have been one of driving down costs whilst combining activities – whist on the top, improving the passenger experience on top in terms of connectivity and connections on trunk routes.
It also allows them to co-ordinate on pricing, so be aware.
The transatlantic joint ventures are a great example of this (which are broadly along airline alliances). There are signs of airlines also going across alliances – where the commercial benefit maybe better.
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Strange bedfellows…I think China Eastern owns 10% of Air France/KLM and there is speculation that China Southern would leave Skyteam. Crazy!