Air France KLM to cut long-haul routes by 10% if pilots resist changes

In its previous restructuring program Air France KLM only managed to shed 9% of its workforce, or 6,413 employees through voluntary departures, while a further 800 jobs will have to go if the airline is to meet its new target of €1.8bn in cost-cutting. Currently the airline is suffering from heavy competition from both Gulf airlines and low-cost carriers.
Management at the airline have indicated that if a deal cannot be agreed then approximately 10% of its long-haul routes, between 9 and 14, would have to be cut. As each plane represents roughly 350 jobs, that would amount to a reduction in the workforce of approximately 3,300 jobs, despite this having been denied as far back as June.
The airline is aiming to have an agreement with the pilots over the restructuring program by the end of September, failing which the routes earmarked for cutting would be removed from the airline’s schedule. Currently pilots are resisting proposals put forward at the last restructuring program that would see part of their current compensation cut.
Someone close to the company indicated that the majority of the planned cuts would arise from increasing the working time of crews but with no increase made to their salaries. Air France-KLM has seen its losses increased by 3% in the first half of this year to €638m. At time of publication €1.00 = US$1.10