May 18, 2012
NEWS
Airlines
Air France Faces Tough Competition On The African Continent
By: E-TA Staff | June 10,2010
Image via Air France
The airline companies view the 'World Cup' as an opportunity for developing their business on the African continent.
Knowing these to be the most profitable routes for Air France, the French company will see competition strengthening on its favourite ground.
Information coming from “Figaro”, French newspaper, indicates that Ethiopian Airlines is all set to sign an agreement with Star Alliance to join the alliance dominated by Lufthansa.
But as exposed by the newspaper which has got a confidential document from the company, "in 2008-2009, the ten most profitable routes for the company were exclusively African.”
Apart from Star Alliance the main competitor, Sky Team, which is Air France, headed by Pierre-Henri Gourgeon also sees booming Gulf Companies like Emirates, Gulf Air or Etihad, entering the battle.
"This increased competition should lead to lower fares on its roads and reduce the margins of Air France in Africa," said an analyst for Le Figaro.
