On Wednesday, management had revealed that negotiations with the union representing Air France-KLM pilots on its initial restructuring plan had failed, opening the way to establishing a “Plan B”, which is expected to include a 10 percent reduction of long-haul flights and a delay in its orders for Boeing 787s.
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A few 300 job cuts would involve pilots, 700 stewards and hostesses and 1,900 ground staff.
It also faces stiff competition from low-priced rivals as well as airlines in the Middle East. “We will discuss it with staff representatives on Monday”, Alexandre de Juniac said on Friday. Unions told AFP they expected at least a few compulsory departures.
Air France KLM SA (OTCMKTS:AFLYY) was downgraded by Zacks from a “buy” rating to a “hold” rating in a research report issued on Tuesday, MarketBeat reports. “You have to look at the figures – the group’s financial, industrial situation is hard”.
French Prime Minister Manuel Valls on Thursday encouraged both sides to return to the negotiating table, while calling on the pilots to show more flexibility. “So you have to carry out reforms and so the government supports the company down the path of reform”, Macron said after talks with De Juniac.
Franco-Dutch carrier Air France-KLM (AFLYY.PK,AFRAF.PK) announced that its Board of Directors met to assess the implementation of the Perform 2020 plan within the Group.
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The company has been struggling financially for a few time, showing losses of 619 million euros in the first half of 2015 with an overall debt of around 5.4 billion euros. “These points were presented to the board for information, but no vote has been taken”, said Didier Dague of the FO union.
