Thursday, June 21, 2012

Air France to elimate 5,100 positions

Air France (AF) has called for a 20% cut in costs and a reduction of more than 5,100 jobs by December 2013 as part of its Transform 2015 strategic plan to restore profitability.

AF said it hoped the job reductions could be achieved without compulsory redundancies, but the option remains open if staff do not agree to voluntary measures, including incentives for early retirement or voluntary redundancy, moves to part-time work, or job-shares. The aim is to reduce headcount to 49,301 in a two-year period that began in December 2011. Attrition during the period is estimated at 1,712 personnel, leaving a further 3,410 to depart, including 450 pilots and 904 cabin crew.

“Air France is facing a fundamental choice about its future,” said AF chairman and CEO Alexandre de Juniac, announcing the strategy plan. “If we all make the necessary equitably distributed efforts, there will be no forced departures.”

Other points in the plan include restructuring short- and medium-haul operations around three poles – AF mainline, a new regional hub and LCC subsidiary Transavia France (TO); combining operations of its three regional subsidiaries – Brit Air, Airlinair and Regional – at this new hub; developing TO to attract the leisure market, with new routes in 2013 from Orly, Lille, Lyon and Nantes; improving long-haul operations by investing several hundred million euros in new onboard facilities; and accelerating cost reduction in the cargo division.

(Alan Dron - ATWOline News)

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