Air France lays on more flights
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Air France adds seats despite uncertain times ahead
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PARIS, France (CNN) -- Air France plans to boost the number of seats available on summer flights despite many of its rivals grounding their planes.
But Europe's second-largest airline said on Thursday that because of global political uncertainties -- Iraq tensions and North Korea's nuclear program – the increase was less then the planned 5 percent to 7 percent increase.
"In an uncertain economic and geopolitical climate, Air France has decided on a very moderate increase in its schedule for summer 2003, increasing the number of seat-kilometres by 1.8 percent,'' the airline said.
Air France, which is less reliant on trans-Atlantic routes than rivals British Airways and KLM of the Netherlands, plans to add extra services following the collapse of domestic rival Air Lib earlier this month. In the past, it has also benefited from the collapse of Belgium carrier Sabena and Swissair.
Its German rival Lufthansa grounded 10 more planes last week, taking the total number to 46, as it cuts investment and freezes hiring as weak demand for air travel persists during the economic downturn. KLM has also announced plans to take out services from its summer schedule and warned that a worsening slowdown threatened earnings.
But Air France plans to increase flights on Asia routes by 11 percent, compared to last summer. The airline, which already flies to Beijing, Shanghai and Hong Kong, plans to increase flights to add other routes in China.
The number of flights on European routes will be increased by 3.3 percent but Air France said it would adapt its schedule to respond to a dip in demand for its short-haul European markets.
Although Air France has withstood a downturn in the aviation industry better than many of its rivals some analysts are uneasy with the airline's aggressive capacity increases, saying the company could be putting itself at risk should the market turn sharply lower as a result of further economic weakness or a conflict in Iraq, Reuters said.
