50 SKY SHADES - World aviation news

Air France nears decision on cuts

Download: Printable PDF Date: 29 Sep 2015 16:42 (UTC) category:
Publisher:
Air France nears decision on cuts - Airlines publisher
Tatjana Obrazcova
Country: France
Source: ATW

Air France and its trade unions will reach a deadline Sept. 30 on whether cuts to its long-haul services can be averted.

The loss-making airline said Sept. 8 that it could drop 10% of its long-haul services and proceed with redundancies if it does not reach an agreement with all its unions over implementing itsPerform 2020 turnaround plan.

The airline’s Central Works Council held a meeting Sept. 24 to discuss the proposals—which would see both pilots and cabin crew on mid- and long-haul routes work longer hours for no extra pay to improve productivity—but it is believed no agreement was reached.

“We are not commenting on the outcome of last week’s council meeting,” airline spokeswoman Ulli Gendrot said, adding that discussions between management, pilots and cabin crew are continuing.

She confirmed that an Air France-KLM board meeting is scheduled for Oct. 1 and that Air France’s board will meet the following day.

The next Central Works Council meeting is scheduled for Oct. 5 and it is thought that a management decision on how it will proceed will be communicated to the unions on that date.

Among measures being considered by the airline to improve its financial position are compulsory redundancies—a move that would not be well-received by the heavily unionized workforce. Air France endured an expensive pilot strike in fall 2014 over moves to improve its financial position.

The carrier has also said it could postpone planned deliveries of its order for Boeing 787-9s, which is due to start arriving late 2016.

Gendrot referred ATW to a weekend report in the French newspaper Le Journal Du Dimanche, in which Air France CEO Frédéric Gagey said that successfully fulfilling Perform 2020 would bring the carrier’s competitiveness closer to that of partner KLM, whose unions had accepted the Perform 2020 plan.

Asked if failure to reach agreement by Sept. 30 would result in cutting routes and frequencies, Gagey noted Air France either has to improve its productivity or scale back its ambitions; the latter choice, he said, would be “extremely regrettable.”

He noted that other carriers—such as Iberia, British Airways and Delta Air Lines—had “drastically” cut some activities to improve their positions. Air France was extremely reluctant to do this, preferring to reach an agreement on reducing costs with its workforce.

If the company’s financial performance is satisfactory by the end of 2017, he added, Air France would put €100 million ($112 million) on the table for staff. It also aimed to recruit more pilots in 2017-18 “if our efforts bear fruit.”





Recommended

Gogo secures $7.5 million NOAA contract, providing mission-critical communications services for ‘hurricane hunter’ aircraft

SD Government, a Gogo company serving the military and government markets, announced today that it has secured a multi-year framework contract from the U.S. Department of Commerce's National...

Daher Aircraft showcases its “go anywhere” Kodiak 900 along with the TBM 960 at France Air Expo

The European tour of Daher Aircraft’s “go-anywhere” Kodiak 900 multi-role airplane continues this week at the France Air Expo 2026 event in Lyon, France, where it will join a fast, e...

VINCI Airports celebrates the completion of the extension and renovation of Kansai International Airport, as well as the 10th anniversary of the concession

Kansai International airport (KIX) reaches new milestone in its development with the inauguration of the completed international trade zone. This completion marks the conclusion of the extensive renov...

AIR selects Dynon Avionics as exclusive avionics provider across smart aircraft portfolio

AIR announced a strategic partnership with Dynon Avionics as its exclusive avionics provider across its aircraft portfolio. The portfolio includes the AIR ONE personal eVTOL and the company&...

Android Apps development in Riga, Latvia