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Plunging revenue prompts Air France Cargo to slash prices to stay aloft
TROUBLED Air France Cargo has started "extremely aggressive pricing" after a 10 per cent drop in revenue driven plummeting oil prices and volatile exchange rates.
"We don't have any choice. When you no longer have any traffic, the notion of optimising revenues no longer holds," said vice president Alain Malka.
Mr Malka revealed that over the past three years, the French cargo carrier had lost on average 2.5 per cent a year in terms of unit revenue per ATK, reported Lloyd's Loading List.
Mr Malka said the cargo carrier had finished a programme of reducing maindeck capacity, with its last Boeing 747-400F leaving the freighter fleet in April.
"We are now at the low point in our [maindeck] capacity, conserving our two B777 freighters, which are profitable," he said.
Bellyhold space will continue to grow - as a result of the passenger aircraft set to join the Air France fleet - and now represents 90 per cent of our capacity against 10 per cent for freighter aircraft," he said.
"We don't have any choice. When you no longer have any traffic, the notion of optimising revenues no longer holds," said vice president Alain Malka.
Mr Malka revealed that over the past three years, the French cargo carrier had lost on average 2.5 per cent a year in terms of unit revenue per ATK, reported Lloyd's Loading List.
Mr Malka said the cargo carrier had finished a programme of reducing maindeck capacity, with its last Boeing 747-400F leaving the freighter fleet in April.
"We are now at the low point in our [maindeck] capacity, conserving our two B777 freighters, which are profitable," he said.
Bellyhold space will continue to grow - as a result of the passenger aircraft set to join the Air France fleet - and now represents 90 per cent of our capacity against 10 per cent for freighter aircraft," he said.
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