Air France 777-328(ER) (32726/490) F-GSQD arrives at Los Angeles International Airport (LAX/KLAX) on December 7, 2011.
(Photo by Michael Carter)
Air France has detailed plans for a further 800 voluntary layoffs. It is also considering delaying its Boeing 777 deliveries and has sold half its 4.4% stake in Amadeus.
While Transform 2015 and lower fuel prices will deliver some benefits in 2015, a weaker unit revenue trend since the summer of 2014 has prompted the additional cuts.
In a statement, Air France said the voluntary redundancy plan will affect “approximately 800” ground staff and cabin crew. This will be coupled with “wage moderation and productivity efforts.”
An Air France spokeswoman declined to give further details or comment on the cost savings target of the new measures, which include revenue and purchasing initiatives. Further information is expected at the release of Air France-KLM’s full-year results on Feb. 19.
The cuts also include a “downwards revision in fleet and capacity growth.” Air France-KLM Group is still due to take delivery of five Boeing 777s in 2015, three for Air France and two for KLM, but its deliveries from 2016 onward could be delayed.
“Nothing has been confirmed,” the Air France spokeswoman told ATW. “The group may postpone some of its deliveries from 2016, but we don’t have any further information or details to give.”
Finally, Air France-KLM has raised €327 million ($378 million) by selling half of its 4.4% stake in IT firm Amadeus. The other 2.2% is being held by Deutsche Bank under a hedging transaction which was sealed last November, although Air France still owns these shares.