https://www.upinthesky.nl/2016/12/26/ee ... ance-geld/
One in three long haul flights are lossmakers
The French state wants to give Air France tax benefits to make the company profitable again. The minister of Transportation said so in the French newspaper La Tribune.
Of all long-haul flights, the company is losing money on 35% of them, according to minister Alain Vidalies. He says it's a good idea to make those routes profitable again: "Air France currently profits, just like the other airlines, of low oil prices. Despite the beneficial circumstances there are many lossmaking routes. The plan for a new airline, Boost, which could offer these routes with a lower cost base is a smart plan, according to Vidalies. He adds that the market is changing rapidly and hopes that management and unions quickly find common ground.
The minister says that the state has already contributed 130 million euros to Air France through tax benefits. Half of which is due to a tax advantage rule on competivity, the other half through lowering civil aviation taxes. "All companies can profit from it, but due to it's size Air France is the biggest benificiary.
Vidalies says he is a supporter of state support of the airline. In a letter, the French government told Air France that if they manage to become more profitable, the government will also contribute more. "It must be within proportion.", says the minister. "It cannot be the case that Air France makes very small steps while the government is substantially increasing their contribution. The most important method to give benefits to Air France is by setting a maximum amount of tax per airline.
If employees, shareholders and the French state together want to decrease spending by 500 million in 2020, this is on the table, according to the minister.