Air France-KLM feels the heat in Paris

Competition just got even tougher for Air France-KLM as yet another low-cost operator offers cheap transatlantic flights from Paris, while the Franco-Dutch carrier struggles with a top management void and labour strife. IAG started discount links between the French capital and Montreal Monday through its low-cost arm Level, taking direct aim at Air France-KLM on the busy route. With additional flights planned from September to New-York, Level is competing with Norwegian Air Shuttle, XL Airways, WOW Air and Primera Air Scandinavia in offering budget fares out of Paris. Discount airlines made up a third of French traffic last year, a trend that’s set to continue at a time when Air France-KLM is in disarray. “Air France has a fantastic brand and a great network, but everybody has to change,” IAG CE Willie Walsh said. <br/>