French carriers merge in low-cost grouping

XL Airways and La Compagnie airlines are merging in a bid to create a sizeable French presence in the long-haul, low-cost market. La Compagnie is an all-business-class airline operating two 74-seat Boeing 757-200s between Paris Charles De Gaulle (CDG) and Newark Liberty International Airport. XL Airways, also based at Paris CDG, is in the low-cost economy bracket and operates a small fleet of Airbus A330-200s and -300s. The -200s have a two-class configuration of 18 premium and 343 economy seats, while the larger -300s have a single-class, 408-seat layout. XL flies to destinations in North America, the Caribbean and Indian Ocean. The two companies will band together under the umbrella of La Compagnie’s holding company, DreamJet Participations. Frantz Yvelin, La Compagnie’s founder, CEO and driving force behind the merger, has resigned “to pursue other projects.” The position of CEO of the two airlines will be taken by XL Group’s current CEO Laurent Magnin. The two carriers will retain their separate identities, a spokeswoman for the group said Dec. 2.<br/>