Air France : a new retructuring plan

[airazurxtror]

Air France's management on Friday (Sep 4) ratcheted up pressure on workers to agree to a new restructuring plan, saying that the alternative is flight cuts and possible forced layoffs, union sources said.

Air France is now seeking to agree another 1.8 billion euros (US$2 billion) in cost savings as it comes under continued pressure from low-cost and Gulf carriers.

Management signalled "a 10 per cent drop in long-haul routes" if no deal is reached soon. The possibility of forced layoffs was also evoked. No precise numbers were mentioned.

The airline also has to resolve a dispute with pilots under the previous restructuring programme that would see parts of their compensation cut.

The airline has had trouble keeping up with competition and an attempt last year to mount a major expansion of its low-cost unit sparked a costly strike by pilots that led management to backtrack.

Air France-KLM saw its losses deepen by 3 per cent in the first half of this year to 638 million euros.

http://www.lemonde.fr/entreprises/artic ... 56994.html

[sn26567]

One member of the management declared recently that only 50% of the long-haul routes are profitable due to the competition of the Gulfies...

[airazurxtror]

Others restrictions :
- there will be no more cakes for the crew on long-haul flights, only fruits - saving 400.000 euros per year
- the "partially free" tickets will be more costly (a rise between 19 and 29 euros), for AF employees as well as for travel agents

http://www.air-journal.fr/2015-09-04-pl ... 49691.html

[convair]

This new setback could potentially revive the tensions with the KLM branch.

[sn26567]

I already mentioned it in the Trivia thread:

Following the example of the Lufthansa Group with Eurowings, Air France KLM is mulling the creation of a long-haul low-cost subsidiary ("Sunline") to fly to overseas tourist destinations. A part of the Boeing 787-9 Dreamliners ordered by the Group would be used for that purpose.