Written by Tim Hepher
- PARIS (Reuters): The CEO of Air France-KLM has asked Aeroports de Paris to make improvements to Charles de Gaulle airport in the French capital, claiming that a lack of jetways has resulted in a daily battle for aircraft parking places and increased operational expenses.
- Chief Executive Ben Smith told reporters at the Franco-Dutch airline group’s 20th-anniversary speech that during morning peak hours, hundreds of flights are left without a jetway or “contact” gate, forcing passengers to use busses to go to the terminal.
- ADP did not reply to messages for comments.
- President Emmanuel Macron’s administration abandoned plans for a brand-new terminal at CDG in 2021 and instead requested state-run ADP to submit fresh ideas.
- Despite the expensive 15-year transition and the absence of a direct connection to a planned new rail line to the capital, Smith has no regrets about the government’s choice to close Terminal 4.
- He suggested more funding for already-existing institutions instead.
- “We’re not discussing more capacity here. We are discussing enhancing the current state of affairs. It has great significance for us.”
- ADP and other group officials have reportedly started talking about possible modifications.
- Smith enumerated many additional alleged shortcomings, such as the lengthy travel time to maintenance hangars and the need to tie up aircraft for hours at a time while towing. He also lamented “baggage systems that are old” and the absence of border patrol personnel.
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- The argument arises as Air France and ADP are ready to host tens of thousands of tourists for the Olympics. Both claim to be well-prepared and to be getting along well with one another.
- Edward Arkwright, deputy CEO of ADP, said at the Paris Air Forum last week, “The infrastructure is ready, the staff has been recruited, and processes have been defined.”
“Not ideal”
- Part of the intense rivalry between centers in Paris, London, Frankfurt, Istanbul, and the Gulf is reflected in Smith’s remarks. He showed how some airport repair facilities are located closer to the terminals on Google Maps (NASDAQ: GOOGL), eliminating the lengthy towing times at CDG for routine maintenance inspections.
- At Terminal 2 at CDG, Air France, a French network, has a hub and accounts for 55% of ADP’s traffic. According to research that the corporation commissioned, it accounts for 3.2% of the GDP in the area.
- Hubs, which were first introduced by US package company FedEx (NYSE: FDX) in the 1970s, enable airlines to provide more connections, which increases travel. They need efficient connections to thrive.
- President Francois Mitterand officially inaugurated Terminal 2’s compact halls in 1982, just as the American dubbing revolution was about to spread to Europe. The facility’s original goal was to reduce the amount of time it took to go from the gate to the curb.
- CEO of Air France Anne Rigail said, “It is not the ideal layout; it is quite difficult to operate.”
- Throughout the epidemic, the region became mostly quiet. According to a company representative, Air France is now having to park 10% of its medium-haul and 5% of its long-haul aircraft on isolated stands as traffic has returned to normal.
- That entails a bus journey and more travel time for customers. It translates into a less effective utilization of the hub for the airline. The effect on Air France’s operating margin, which was negative 6.2% in the first quarter, was not quantified by the airline.
- With 67 million passengers in 2023, Charles de Gaulle Airport—which turned 50 this year—will be the biggest in the European Union.
- Regulators authorized a 3% reduction in rates for accessing distant aircraft parking zones and an average rise of 4.5% in airport use fees for 2024–2025.
- According to ADP, its investment plans for 2023–25 include shorter taxi wait times, additional connections, and an overhaul of the luggage sorting system.
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