Air France KLM announced the launch of a new company that will operate 10 long-haul aircraft by 2020 in hopes of competing with popular Gulf carriers. The launch comes after a series of hard hits by the recent rapid growth of Middle Eastern airlines, such as Emirates and Turkish Airlines, and the expansion of low-cost carriers.

The new company will feature current and new KLM routes as well as routes KLM previously halted due to lack of profitability. The modern and innovate airline will be a budget-friendly carrier, but will not be considered a low-cost carrier, with its products and service standards comparable to Air France.

The Franco-Dutch airline hopes to reach €28 billion in revenue by 2020, compared with last year’s €26.1 billion and hopes to fly 100 million passengers from around 91 million currently.

The new KLM airline will start flying in winter 2017 and will initially be staffed by volunteer pilots from Air France, as the company attempts to repair staff relationships after several strikes over the past several months. The staff will be expected to work longer hours for less pay.

With a focus on flights to Asia, long-haul and medium-haul flights, the new KLM airline hopes to improve efficiency and cut costs, however it has been met with skeptical responses on whether or not it will see increased profits. For the time being, the airline’s success remains up in the air.

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