France’s XL Airways Joins Forces With La Compagnie

The newly merged XL Airways-La Compagnie will create a low-cost economy and business-class carrier to France. Photo: William Verguet, David Ingham.

French airlines XL Airways and La Compagnie have merged to create what they are calling the first French long-haul low-fare group servicing both economy and business-class passengers on the New York to Paris route.

XL Airways, the French low-fare carrier, has introduced more than 10 long-haul routes in five years, serving destinations in North America, the Caribbean and the Indian Ocean with Airbus A330 aircraft. The airline pursues an aggressive low-fare pricing policy in economy class, which includes hot meal and checked baggage.

La Compagnie, which was established in 2014 as an all-business-class airline, operates daily flights between Newark International Airport and Paris Charles de Gaulle. It offers a low business class fare on its two Boeing 757-200 aircrafts outfitted with 74 lie-flat seats arranged in in 2×2 configuration. La Compagnie last year introduced a Newark-London flight, but suspended that service earlier this year to concentrate on its Paris route.

The new XL Airways-La Compagnie Group will have consolidated revenue of more than 400 million euros and the merger is expected to generate operational cost controls and synergies. The merged companies, which will now operate under DreamJet Participations, La Compagnie’s holding company, will have more than 800 employees, and two tour operators, Héliades and Crystal.

Frantz Yvelin, La Compagnie’s founder and CEO, has resigned his post in the group in order to pursue other projects. Before La Compagnie, Yvelin had founded L’Avion, another low-cost business-class carrier to Paris, which was sold to British Airways and is now known as Open Skies.

XL Airways CEO Laurent Magnin will now lead the operation of both airlines. “It was inspiring to see how favorably the two airlines’ employees received the news and underscores the shared spirit and mission,” said Magnin. “Our companies will join forces under our French flag, in the premiere tourist destination in the world.”