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Air France slashes fares on some European routes

Air France SA slashed fares by as much as 50 percent on some European routes, for example offering Paris-to-Geneva for as little a 61 euros (US$66), as the airline challenged no-frills carriers competing on its routes.

The French airline, Europe's second-largest carrier, said that on more than 30 intra-European routes, both from Paris and from other French cities, it is pushing the bottom fare 50 percent lower. The new fares began yesterday and require round trip flights, the airline said in a statement sent by e-mail.

The cuts come as the French carrier seeks to prevent discount carriers such as Easyjet Plc or Buzz from wooing its passengers with lower ticket prices.

British Airways Plc and Deutsche Lufthansa AG had to introduce similar price cuts in their own markets to help retain passengers.

"It's another sign of the times: Established carriers have to offer lower fares to compete with the low-cost carriers so their market share doesn't disappear altogether,'' said Doug McVitie, managing director of Arran Aerospace, a consultancy based in Scotland.

"Air France is taking on the marketplace," he said

The 50 percent fare cuts extend earlier moves. Air France last year stepped up competition with low-fare rivals with promotional prices on some routes for couples, retirees, students and other categories of flyers.

Jean-Cyril Spinetta, chief executive of Air France, said last week that the carrier wouldn't allow low-cost carriers to take its short-haul market.

Among carriers that compete with Air France on short routes are EasyJet and Ryanair Holdings Plc, Europe's two largest discount airlines; KLM Royal Dutch Airlines' low-cost subsidiary, Buzz; and Air Lib, a French regional carrier.
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