The story
The beginning
On 23 February 1960, France's Ministry of Public Works and Transport decided to transfer Air France's domestic monopoly to Air Inter. This provided the impetus to enlarge scheduled services within metropolitan France, as well as between the mainland and Corsica island. Though a private sector company because of its limited liability status, Air Inter was compelled to operate unprofitable minor internal routes to justify the domestic monopoly on profitable routes from and to Paris.
Air Inter primarily operated high-frequency scheduled domestic flights from Paris Orly to cities in metropolitan France, principally Lyon, Marseille, Nice, Toulouse, Bordeaux, Strasbourg and Mulhouse. Following the opening of Charles de Gaulle Airport close to the northern Paris suburb of Roissy-en-France and the transfer of the bulk of Air France's international operations from Orly starting in 1974, as well as the simultaneous transfer of UTA's Le Bourget-based operations to that airport, Air Inter began to operate these routes from Charles de Gaulle as well (with the exception of Nice) to feed domestic passengers into those airlines' international networks.
Air Inter also linked Orly with additional second and third-tier provincial French towns as well as with all three commercial airports of Corsica (Ajaccio, Bastia, Calvi). The airline operated regional domestic scheduled routes between major French cities as well. Many of Air Inter's routes serving smaller towns were later contracted to TAT. During the early 1990s, prior to the liberalisation of the internal air market in the European Union (EU), together with Air France, UTA and TAT, Air Inter was a pillar of the French air transport industry.
Domestic expansion and challenges
It had a large share of the domestic market and was the only airline flying most of the domestic trunk routes within metropolitan France on a regular scheduled basis, especially from and to Paris. The exceptions were Paris-Nice and Paris-Basel/Mulhouse. It competed against Air France's in Paris-Charles de Gaulle—Nice and Paris-Orly Airport—Nice flights. Air Inter competed head-on with Swissair, the former Swiss flag carrier, between Paris-Charles de Gaulle and Basel/Mulhouse. The difference between Air Inter and Swissair services on this route was that the former's passengers used the terminal at Basel/Mulhouse airport through the domestic channel that connected the airport to the French city of Mulhouse, whereas the latter's used the international channel that linked the airport with the city of Basel, in Switzerland. For this reason, Air Inter's flights were categorised as domestic while Swissair's were international. In addition, UTA had limited rights to carry passengers, cargo and mail on the internal legs of its long-haul services, between Paris Charles de Gaulle and Lyon, Marseille, Nice as well as Bordeaux. However, flights were too infrequent to pose a threat to Air Inter.
SNCF, one of Air Inter's two largest public sector shareholders, was also the company's main competitor on domestic trunk routes inside France. This intensified when from 1981 SNCF began high-frequency high-speed train (TGV) services on purpose-built tracks. The launch of TGV services between Paris and Lyon, one of Air Inter's busiest as well as shortest routes, led to a reduction in frequency and the use of smaller aircraft. The only other domestic air routes on which Air Inter competed with Air France in the pre-liberalisation years were routes linking the mainland with Corsica island.
In 1977, Air Inter purchased a 20% stake from Air France in the latter's charter affiliate Air Charter International, in return for ceasing to be a rival supplier of charter airline seats in the French inclusive tour market. Annual passenger numbers on Air Inter's domestic scheduled network grew steadily from 2,4 million in 1970 to 5,7 in 1980 to 8,6 in 1981 to 21 million, actually beating Air France one year. This established the firm as the largest scheduled domestic airline in Europe. Air Inter was also one of the few European ultra short-haul, mainline scheduled operators to be profitable most of the time and was a forerunner of today's low-cost airlines in Europe. Fares were lower than domestic ones elsewhere in Europe and competing with rail fares, with short turnarounds (35 minutes for a full 314-seat A300 was common), no seat allocation, no frills service on board and minimum crews.
Expansion of competitors
However the situation changed in the following years. In 1987 Nouvelles Frontières and Corsair were entitled to fly domestic routes up to seven destinations. In 1990 eight "hub-and-spoke" air links were opened to any other French airline, Air Liberté, AOM, and TAT being the most aggressive. In that same year Air France bought UTA through which it took over 35,8% of Air Inter and by consequence controlling more than 75% of the air carrier capital. The sale of controlling stakes in Air Inter and UTA to Air France, as well as the integration of both into the latter, was part of a French government plan to create an unified, national carrier with the economies of scale and global reach to counter threats from the liberalisation of the EU's internal air transport market.
On 1 January 1995, Air Inter lost its monopoly on the domestic trunk routes from Paris Orly. From that day, any EU-based rival was free to compete on these routes, without restrictions on capacity, frequency or fares. From June 6, the company applies a discount of 100 French Francs (€uros 23.78 - 2023 exchange rate) per ticket regardless of the initial fare or destination. The competitors lined up. Because of this at the end of the year the air carrier thought it had lost 1,3 million passengers.
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On 1 January 1996 the air carrier merged into the newly established Air France Europe, which integrated all Air France medium-haul assets and which adopted Air Inter Europe brand. In June, 18 unprofitable routes were closed. In November, La Navette (the shuttle) service was launched from Paris Orly to Toulouse, as well as to Marseille, Nice, Bordeaux, and Montpellier. The idea was to offer flights throughout the day at a high frequency: one flight per hour during off-peak hours and one flight every 30 minutes during peak hours. After this phase, nothing significant happened until the complete and definitive merger into Air France, which took place on 1 April 1997.
From Wikipedia’s article on Air Inter, shared under CC BY-SA 4.0.4
