Air France launch new domestic fares. Price are reduce from 2 to 60 EUR for a return ticket. The fuel surcharge is now included in the price. The sunday rule still exist for the discount fare Evasion, but now a 3 night stay at the destination is also possible.
In Domestic market, the competition with the TGV is important for many destinations, like the shuttle flights "la navette" to Bordeaux and Marseille, where the TGV has a journey time of 3 hours. To Strasbourg, since the new TGV Est, only 2h20 journey time, the AF offer was high reduce. New TGV line are planed in the next years and the competition will incrase.
The TGV operator, the SNCF, has a agressive strategy since a few month, with a yield management politic, similar to Easyjet : only one way fare name "Prem's", from 22 EUR in 2cl. or 40 EUR in 1cl. one way. There are also idTGV for some destination, with only internet ticket and a special price politic, from 19 EUR in 2cl. and 24 EUR in 1cl. oneway ! For many "leisure" destinations like Biarritz, Toulon, Nice, with 4/5 hours TGV journey time, the competition is also important.
Also low cost competitors are arriving in domestic lines : Easyjet has lines from Paris to Nice, Toulouse and Biarritz, and also new lines from Lyon to Bordeaux, Toulouse and Biarritz ! Ryanair has also a small success with domestic lines from the Marseille base : Beauvais (near Paris), Lille and Brest have incrase frequency from 3 or 4 flights per week to daily flights, Biarritz and Nantes will be a new destination from this summer.
Also an other news for Air France, less interessant for the passengers. The workers union will make strike from the 26th February.
The reason is the special fare for workers, "GP". The unemployment insurance administration (URSAFF) want to taxe this tickets, considering this a part of the pay. Only "R1" tickets, that mean tickets with reservation, are concerned. Tickets will be more expensive with this taxe, and workers union protest against !