Chief Executive Officer, Air France, Air France (Société Air France S.A.)
Anne Rigail (Air France): Les défis d'Air France
Ce mardi 20 juin, Anne Rigail, DG d'Air France, a énoncé les grands défis qui attendent le groupe dans l'émission 90 Minutes ...
About Anne Rigail
In a March 2022 conference, Anne Rigail discussed Air France's recovery from the COVID-19 pandemic and the impact of geopolitical uncertainty on the airline. She stated that Air France had received 7 billion euros in state-backed loans and was required to meet commitments on competitiveness and the environment, but had not committed to purchasing only Airbus aircraft. Rigail noted that business travel demand had declined, with corporate clients making up about 40% of passengers in March 2022, and acknowledged the uncertainty surrounding future demand. Rigail also addressed the airline's environmental impact, stating that air transport accounts for approximately 2.6% of CO2 emissions, but warned that without action this could rise to over 20% by 2050. She discussed Air France's use of sustainable aviation fuels and the company's position on a European kerosene tax. Additionally, Rigail encouraged women to pursue careers in aviation and technology, noting that the airline was hiring for digital and data roles.
Transcript (13 segments)
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Interviewer0:00
Welcome to 90 Minutes Business, live from the 54th Paris Air Show. Decarbonization is the industry's key issue. Jean-Baptiste Huet is on site with Air France CEO Anne Rigail. Hello, the CEO of Air France is with us. We're on board one of your jewels, the A220 Pauillac. We'll discuss that and fleet renewal, but first, biofuels are still expensive. How do you envision the future and use of these biofuels?
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Anne Rigail0:54
We are pioneers in biofuels. We started testing in 2014. Now we are in the industrial phase, using more and more. Air France-KLM uses 17% of the world's sustainable fuels while consuming only 3% of global jet fuel. We aim for 10% sustainable fuel by 2030. The challenge is production volume—80 times more globally—and price. The global average is €3,500 per tonne, but in the US with subsidies it's under €2,000, while in France we pay €5,000. Integrating these costs is key since fuel is 20-30% of airline costs. Travel will be a bit more expensive, but there are limits to passing costs to customers.
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Interviewer2:28
We'll come back to biofuels, but travel will be a bit more expensive. Ticket prices are already historically high. If we add more surplus in coming years, don't you think passengers might say no, there's a limit?
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Anne Rigail2:46
Yes, price is a primary choice criterion. We're in a global, competitive industry where competitors face different regulations. On a round-trip Nice-Singapore, our 10% commitment could add €110. Customers might bypass Paris for hubs like Istanbul or Dubai. We need to reduce the €5,000 per tonne cost through more production. Plants take 5-7 years to mature. We welcome President Macron's support for this sector in France. We need it in Europe so these costs exist but are not unbearable, and aviation doesn't become only for the wealthy.
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Interviewer4:11
Are you worried about European companies being attracted by US Inflation Reduction Act subsidies for hydrogen and synthetic fuels? Is there a risk the US becomes the new king of green oil?
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Anne Rigail4:39
There is a sovereignty risk for Europe and France, which is why Bourget announcements are welcome. This is a new industry with risks and opportunities for jobs and value. We buy sustainable fuel globally, but half our flights depart from Europe, so domestic production is important. We've secured contracts with Gevo, Neste, and TotalEnergies for 800,000 tonnes, and we're discussing with Engie and EDF on French projects like Beutijet, supported by the president. We're happy this sector can take off.
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Interviewer6:07
Decarbonization also comes from lighter, more modern planes. We're on an Airbus A220, one of your newest models. This is the Pauillac. How many have you received, and how many to come? Your fleet renewal has been very rapid. Is it almost finished?
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Anne Rigail6:29
We accelerated fleet renewal during COVID when others tightened. It was an excellent decision. The A220 burns 20% less fuel; the A350 burns 25% less. We're on the 25th A220; we've ordered 60 by 2025. We'll receive the 21st A350 in mid-July, with a new product standard; we've ordered 41. By year-end, 30% of our fleet will be new-generation, up from 4% pre-COVID, aiming for 70% by 2030. This supports our goal of 30% CO2 reduction per passenger-kilometer by 2030.
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Interviewer9:16
We're entering a new era—airlines ordering 500-600 planes, like Turkish Airlines and Ryanair. How do you view these rapidly emerging competitors with global ambitions?
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Anne Rigail9:58
This competition isn't new. That's why we need global thinking and European regulations that prevent traffic shifting to non-European hubs. Our goal isn't excessive growth; we're embracing sobriety and intermodality with SNCF. We focus on a top-standard product and attentive service. But we aren't naive—our competitors have very different social and environmental regulations.
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Interviewer11:05
For years, flight shame has been around, especially from Northern countries. Do you feel it's calming? Surveys show people aren't so hostile. Is the issue overblown?
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Anne Rigail11:30
We take a pragmatic approach. Our investments in decarbonization are clear. Stopping flying in France won't solve the problem—France is an aeronautics leader with Airbus, Safran, and Thales. European and French leadership can decarbonize aviation effectively. Young generations still want to fly; discovering other cultures is essential and helps avoid conflict. I believe in the virtues of aviation and of decarbonized aviation.
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Interviewer13:05
Thank you very much, Anne Rigail. Thank you, Anne Rigail, CEO of Air France, who was with us on BFM Business at the 54th Paris Air Show.