Air France to cut 2,800 jobs

The latest job cuts are in addition to the 5,100 revealed in June 2012.

New Statesman
Frederic Gagey, chairman and CEO of Air France, at a press conference in Paris yesterday.Credit: Getty Images.

Air France, a subsidiary of the Air France-KLM Group, is planning to cut 2,800 jobs, or 5 per cent of its work force, by the end of 2014 as part of its turnaround plan to reduce costs and return to profits.

The passenger and cargo services operator said it will begin discussions with staff representatives and unions from 4 October 2013. In addition, the airline will continue its policy of wage moderation in 2014.

The latest job cuts are in addition to 5,100 jobs revealed by the airline in June 2012 as part of its Transform 2015 plan.

Air France, which merged with Dutch carrier KLM in 2004, said that its recovery has begun and Transform 2015 plan is taking effect and confirmed that the implementation of measures led operating income to increase by €100m in the first half of 2013.

Frederic Gagey, CEO of Air France, told at a news conference: “We are in a period of weak demand. We have felt the full brunt of the cyclicality of air transport.”

The Air France Group, which admitted of not achieving its objective of returning to equilibrium in 2013, has decided to develop the activity of its low-cost carrier Transavia France on departure from Paris-Orly, to adjust its domestic point-to-point network and provincial bases.

Going forward Transavia France will operate five additional aircraft from the summer 2014 season. In addition, the seasonal adjustment of the schedule implemented in 2013 at the provincial bases will be continued next year.

The airline, which is also considering changes in production methods at all French stations, said it will disclose the station by station objectives at the Central Works Council meeting on 4 October 2013.

In context of cargo operations, the airline has decided to refocus its cargo fleet on its two Boeing 777F aircraft.

The group is expected to post a net loss in 2013, marking its sixth consecutive annual loss.

Meanwhile, the airline shares fell by more than 3 per cent following the jobs cut news.