A couple of things:
From what I remember as a kid in the 1990s in the US, smoking was allowed on international flights. It was one of those grey areas that happen when traveling between countries with different laws.
I've also seen a lot of jokes about French culture being waaay more "pro smoking" than US culture.
Thus smoking beling allowed on Air France until 2000 doesn't surprise me.
Up until 2004 you had to book a non-smoking rail-car in France. I remember having to book a seat in the smoking section because the non-smoking cars were full. Smoking was only being phased-out in high-school yards (for 15-18 yo highschoolers not only the staff)