Failure of union talks sees Air France forced to downsize

For some time Air France, a subsidiary company of Air France-KLM, has struggled over negotiations with pilots in an effort to reduce running costs. One of the major stumbling blocks which directly affects Air France is Air France-KLM’s ‘Perform 2020’ plan which includes an investment of €1 billion (US$1.1 billion) in the low-cost arm of the airline, Transavia. This caused widespread pilot criticism which ultimately led to a two-week strike last year which resulted in over €300 million (US$3.30 million) in losses for the company.
Air France have today stated that because of the impossibility of reaching an agreement on boosting productivity at the airline, Air France-KLM had instructed Air France management to implement an alternative restructuring plan. According to the airline “This plan includes a reduction in Air France’s activity in 2016 and 2017 in order to guarantee the company’s future and its economic objectives,” which will be presented to its Central Works Council this Monday coming. At the time of the original announcement this morning it was made clear there would be significant redundancies, though the figures were not revealed. However later in the day a union source disclosed that up to 2,900 jobs would go. These will likely include up to 300 pilots, 700 stewards and hostesses, and 1,900 ground staff.