Air France-KLM and Announce Falling Cargo Revenue Plan

PARIS, FRANCE - Air France – KLM have announced that falling cargo revenues (coupled with reduced passenger numbers) means 1,500 to 3,000 jobs are to be cut in a programme beginning with voluntary redundancies. Talks with employees representatives commence next week to enable the group to formulate a scheme by October.

Air France –KLM currently employ 63,000 staff and no flight staff or maintenance crew members will be cut. The airline needs to reduce capacity in both freight and passenger divisions to alleviate the problem of falling revenues. It is also considering cutting or reducing on routes throughout Europe, North Africa and the Middle East to combat the current economic malaise and the stiff competition from low cost carriers and the improving rail facilities.

The move comes after the group has lost steadily for the past few months and has just fallen from the CAC – 40 Share Index, a change which will officially occur on 21st September. Although the company’s stock has risen of late, others have done better.

British Airways are also in negotiations to reduce its staff by up to 4,000 whilst Lufthansa says it will reduce its ground works staff by 1,000 following its take over of Austrian Airlines.

http://corporate.airfrance.com/