La Compagnie Merges With Low-Cost Carrier XL Airways
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Earlier today, all-business-class carrier La Compagnie and French low-cost and all-economy-class carrier XL Airways announced they’re merging for an undisclosed amount. According to a report by Business Insider, the newly-merged carrier will be led by XL Airways’ CEO Laurent Magnin — the founder of La Compagnie, Frantz Yvelin, has resigned and will no longer be affiliated with the airline.
The combined carrier will specialize in low-cost, international and long-haul service, and will employ about 800 people. The XL Airways-La Compagnie Group is expecting about $425 million in annual revenue, but it’s still not clear exactly how it will operate since the two have very different products and business models.
La Compagnie currently has two Boeing 757s in its fleet, whereas XL Airways has five A330s and one 737. Over the past few months, we’ve speculated on the financial future of La Compagnie, as the all-business-class model hasn’t worked in the past and the carrier appeared to be losing profits. We also covered when the carrier ended its London route in September of this year.
It appears the new merger will help bring some stability to both brands. Only time will tell how the new move plays out and if the aircraft will feature all-business-class or all-economy-class cabins or some combination of the two. However, if the group decides to go with the latter option, that’ll be taking away the feature that made La Compagnie unique in the first place.
H/T: One Mile at a Time