This Wednesday (29) Air France received its first Airbus A220-300, the first of a firm order for 60 units. This is a milestone for the Toulouse manufacturer, as it represents the first delivery of the new generation aircraft to a major player on its own continent.

Air France has Europe’s largest order for this aircraft in addition to the 60 firm bookings of the aircraft formerly known as the Bombardier CS300, the airline also has 30 options and 30 purchase rights for the model, which will carry 148 seats in a two-class configuration – although the seats in both Business and Economy classes are the same.

«This new aircraft, with unrivaled energy performance, represents a very important asset for Air France,» Said Benjamin Smith, CEO of the Air France-KLM group, in a press release.

«To date, fleet renewal is the main source of CO2 emission reductions, which is why we continue to invest in state-of-the-art aircraft. We are also taking all actions at our disposal, such as sustainable fuels or eco-piloting, as part of our contribution to promoting a carbon-neutral air transport industry and positioning ourselves as a major player in more sustainable aviation».

By the end of the year, Air France will have taken 6 A220s, and 15 will arrive in 2022. Once deliveries are completed, according to the group, this model will represent «about 60%» of Air France’s «medium-distance» fleet, along with the Airbus A320 and A321.

Anne Rigail, CEO of Air France, said: «The arrival of a new aircraft is always a special occasion for an airline. All Air France teams have spent more than two years preparing for this moment and we are very pleased to see our customers discover the optimal comfort offered by this aircraft». She added that «the cabin is more spacious, brighter and offers full Wi-Fi connectivity, which further contributes to the high-end positioning of our offering».

How will the A220 be useful for Air France?

Beyond offering more comfort to its passengers – the A220 has a 2-3 seating configuration – or reducing CO2 emissions, it is important to take into account the economic reasons why Air France opted for the Airbus aircraft. In a press presentation, the reason is clear: «the choice of this aircraft, whose costs per seat are 10% lower than those of the aircraft it replaces», he says, «responds to the need to improve the profitability of Air France in its short and medium-haul business«.

The need to replace the short-haul fleet is justified by a keynote interview by one of Europe’s nemeses from years ago. In the Paris Air Forum in 2016, Ryanair’s Group CEO, Michael O’Leary, said that the dilemma of Europe’s big groups’ was that its long-haul operations were profitable, while its short-haul was not.

However, since the short-haul, which is a deficit, feeds the long-haul, which is profitable, the reduction of the short-haul is not a viable option.

He said whether traditional airline groups would adopt, or the future lay in low-cost airlines, such as EasyJet and Ryanair, would power the traditional carriers’ large hubs.

Although O’Leary’s personality is known for his exaggerated statements, the bottom line was true: for years, groups like Air France-KLM have been fighting to make their short-haul operations profitable.

Five years later, the «low cost» still does not feed the «legacies». However, in the wake of a pandemic that has devastated corporate demand from businesses – the bread and butter of legacies – and long-haul services, large groups need more than ever to run short-haul flights.

And the first routes announced by Air France demonstrate this well; surprisingly, the company is not targeting secondary markets, but key destinations on the continent. From the first day of operations, October 31, the airline will connect its Paris/Charles de Gaulle hub with Barcelona, Berlin, Madrid, Milan/Linate, and Venice.

During the winter season, other destinations will be added: Bologna, Copenhagen, Lisbon, and Rome/Fiumicino, all connected with CDG.

Air France’s initial Airbus A220 network.

The analysis carried out by Aviacionline with Cirium’s Diio Mi application shows that, on these routes, 48.2% of Air France’s capacity (i.e. 33.7% of all capacity on these routes) was operated by the airline’s lower capacity aircraft – the Airbus A318, the A319, and the Embraer E-Jets, which will be replaced by the A220, which can produce lower unit costs.

Ultimately, the lower unit cost – down 10% in the case of the A318 and A319 and presumably even more so in the case of E-Jets – will allow Air France to expand its margins or stimulate demand by reducing fares, without affecting the company’s current margins. If used correctly, the Airbus A220 will change the way Air France plays the game of short-haul flights, without flooding markets with capabilities like the A320 and A321 do.