Air France-KLM sees Korea as key Asian market for young, trendy travelers

Boris Darceaux, general manager for Korea, Japan and New Caledonia at Air France-KLM / Courtesy of Air France-KLM

Air France-KLM Group identifies Korea as its next major revenue area in Asia, driven by a significant increase in demand from young independent travelers seeking European routes following the COVID-19 pandemic, according to a senior executive at the European airline.

Boris Darceaux, general manager for the airline’s Korea, Japan and New Caledonia business, described the Korean market as “more than promising” due to the trendy nature of local customers.

“One of the remarkable difference and characteristics of the Korean market is that it shows a significantly high proportion of young free independent travelers, compared to other Asian markets such as Japan,” he told The Korea Times.

He picked the remarkable purchasing power of Generation MZ — which encompasses Millennials and Generation Z — as a key driver for growth in the Korean market.

“Generation MZ is becoming the primary consumer group in Korea,” he said.

“That’s why Korean travelers are very trendy, creating and leading the global travel trend. Starting from last year, a trend has emerged among Korean travelers where they are willing to spend more on leisure activities, leading to an increase in customers seeking premium services.”

Reflecting on the demand, the airline introduced its new business class seats for Korean travelers last year. They are designed with features including full flat, full access and full privacy, according to the executive.

KLM also introduced its new “world business class” seats this year for travelers on a route between Incheon and Amsterdam, giving more options for consumers seeking more premium in-flight services.

Air France-KLM also left open the possibility of expanding its routes from Incheon to other major European cities.

Air France's A350 passenger aircraft / Courtesy of Air France-KLM

“While we are continually exploring opportunities to expand our route network, including between Seoul and our two hubs — Paris and Amsterdam — such initiative require extensive coordination and regulatory approval," he said.

For now, Air France operates the route between Incheon and Paris seven times a week, while KLM offers six weekly flights between Incheon and Amsterdam.

“We remain committed to providing our customers with the best possible travel experiences and will share updates on any route expansions as they become available," Darceaux said.

Air France-KLM also hopes to take advantage of growing demand from European tourists eager to experience Korean culture amid the global popularity of the country's pop culture.

According to data from the state-run Korea Tourism Organization, the number of foreign tourists visiting Korea is steeply increasing, fueled by the growing influence of Korean culture. The number of overseas visitors reached 1.42 million in July, up 47.5 percent from a year earlier.

“We believe we offer the most compelling value proposition for European travelers coming to Korea to explore the vibrant Korean culture.”

KLM's Boeing 777 aircrafts / Courtesy of Air France-KLM

Rivalry from local LCCs

T’way Air, one of the Seoul-based low-cost carriers (LCC), launched its long-haul route between Incheon and Paris in August.

Given that low ticket prices are a significant competitive advantage for most low-cost carriers (LCCs), the symbolic launch of a local LCC's inaugural European route poses a threat to foreign airlines, which currently struggle to match the pricing competitiveness of these LCCs.

But the executive dismissed such concerns, saying that both European airlines will win over customers with their own premium identities.

“They (local LCCs) offer aggressive fares and a simplified product, but I think we have strong arguments to continue to gain the loyalty and trust of Korean passengers. We have a competitive advantage in that Air France and KLM both reflect each country's culture and vibe," he said.

“For instance, when taking Air France, you can feel the elegance of French culture the moment you step onboard, as the airline offers in-flight meals crafted by Michelin-starred chefs. Passengers can enjoy delicious French cuisine as well as famous French wine and champagne.”

The same also goes for KLM, according to the executive.

“KLM, on the other hand, introduces premium Dutch lifestyle, and customer for our business class will be served with in-flight meals created by Jonnie Boer, a renowned Dutch chef," he said.

The Air France-KLM Group was formed in 2004, marking the first emergence of a multinational airline group.

Korean Air is also in the final phase of its much-anticipated acquisition of Asiana Airlines. Korean Air is expected to complete the long-delayed takeover of Asiana sometime around the end of this year, after winning approval from the U.S. Department of Justice.

The Air France-KLM executive said mergers and acquisitions in the aviation industry come with key upsides in terms of expanding their connectivity.

“Air France-KLM has been able to achieve cost savings through shared resources, such as aircraft, maintenance and IT systems,” he said.

“Other changes that the merger has brought were that both airlines were able to increase connectivity. The merger has allowed Air France-KLM to offer a more extensive network of routes, providing passengers with more travel option and greater flexibility.”