Air France-KLM aims to reduce debt by EUR2bn by end-2014

Air France-KLM stated (12-Jan-2012) it plans to immediately implement EUR1 billion in cost reduction measures including a freeze on pay rises in 2012 and 2013, as part of the the carrier's 2012-2014 transformation plan. The airline's hiring freeze introduced in Sep-2011 will also continue. Other measures to be introduced include network adjustments, reduction in overhead expenses and productivity measures. The group also plans to increase capacity by 5% over the period on a cumulative basis, which will lead to a shrinkage of the group's fleet and cabin crew workforce. Investment is set to decline to EUR5 billion over the period, compared to over EUR6 billion over 2009-2011. The group plans to return its medium-haul business to breakeven by 2014. [more - original PR]