Air France to Reduce Activities in 2016-17 After Union Talks Fail

Air France said on Thursday it plans to reduce its activities in 2016-2017 in order to safeguard its future, after talks with pilots over a restructuring plan failed on Wednesday.

Air France, part of Franco-Dutch airline Air France-KLM , said in a statement that because of the impossibility of reaching an agreement on boosting productivity at the airline, the parent company board had mandated Air France management to implement an alternative restructuring plan.

"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," the company said, adding that plan will be presented to its Central Works Council on Monday.

Air France had threatened to cut 10 percent of its long-haul network by 2017 unless pilots accept significant cost cuts and changes to working conditions, union sources told Reuters earlier this month.