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Air France plans 2800 job cuts, won't break even in 2013

18-Sep-2013 7:39 PM

Air France CEO Frederic Gagey stated (18-Sep-2013) the carrier discussed a new voluntary departure plan with staff on 18-Sep-2013 as it seeks to reduce costs as it forecast it would miss its break-even target in 2013 to post a sixth consecutive annual operating loss. "We're in a period of weak demand and things are going poorly, particularly in the countries where we're focused... We must improve our performance," Mr Gagey said, adding that the carrier sees it as "imperative" to break even in 2014. The carrier plans to introduce a new job cut plan, involving the elimination of 2800 additional positions, with the carrier to offer a buyout plan in order to reduce around 5% of its workforce. Mr Gagey however noted that the new measures are the "last" under the Transform 2015 plan. The carrier last year announced that it was reducing its workforce by 5100 positions and originally said it would stem losses by the end of 2013. The carrier said it hopes the additional cuts will help it save EUR450 million p/a as it seeks to cut around EUR2 billion in annual costs by 2015. [more - original PR]