Air France seeks to cancel five Boeing plane deliveries

Air France will negotiate with Boeing and leasing company AerCap to cancel the delivery of five 787 passenger jets, Chief Executive Frederic Gagey said on Monday as he unveiled new cost-cutting measures for the troubled airline.

The five Boeing planes had been due for delivery in 2016 and 2017, Gagey said during a news conference, adding that additional orders for the 787 were also under review by the French carrier, a unit of Air France KLM.

Gagey also signaled willingness to negotiate with staff over the planned cutbacks and said the company's operating margin would be positive in 2015. Air France has no current plans to launch a low-cost long-haul service, he said.

(Reuters)