Air France to axe 2,800 more jobs
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Air France is planning to slash 2,800 more jobs after its management decided to ramp up the ‘Transform 2015’ cost-cutting strategy.
Presenting an update of the turnaround plan this week, the airline’s management admitted that the Transform 2015 plan “will not achieve its objective of returning to equilibrium”. As such, the airline has unveiled a series of extra cost-cutting measures, including the loss of thousands more jobs.
“To ensure the sustainability of the company and to continue investing for our customers, the return to equilibrium in 2014 is essential,” Air France said in a statement. “This… requires additional measures to reduce costs and accelerate the recovery of short and medium-haul operations and cargo.”
These additional measures will include the reduction of 2,800 positions in 2014, though a new voluntary redundancy scheme. A consultation period with staff representatives and unions will commence from 4 October 2013. Air France said it would also introduce “a policy of wage moderation” in 2014.
In its short- and medium-haul operations, Air France plans to reduce its point-to-point network, while adding five more aircraft to the fleet of its Transavia subsidiary for the summer 2014 season, offering extra departures from Paris Orly airport. The airline will also reduce its cargo capacity.
Growth will continue on long-haul routes however, with more new routes expected to be launched. The airline’s long-haul fleet renewal will also continue, with the arrival of new Boeing 787s and Airbus A350s in 2017 and 2018 respectively offsetting the retirement of the airline’s B747-400 fleet in 2015.
“Air France is continuing its thorough transformation based on the commercial development of its markets with high growth potential, the move upmarket of its products and services and the reduction of its costs. I intend, together with all Air France staff, to concentrate on customer service and the successful recovery of our company,” said Frédéric Gagey, chairman & CEO of Air France.
The latest round of cuts follows the EUR793 million (US$1.06 billion) net loss incurred by the airline in the first half of 2013. This followed a EUR1.19bn full-year loss suffered in 2012.
Prior to this week’s announcement, Air France had already announced plans to cut 5,100 jobs. The airline employs approximately 69,000 staff.
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