22-Jun-2012 11:02 AM

Air France finalises strategic plan; 5122 positions to be removed by Dec-2013

Air France announced (21-Jun-2012) the finalisation of its strategic plan to return the airline to profitability through improved competitiveness. The plan includes the reduction of staff by 5122 positions from Dec-2011 to Dec-2013. The reductions are expected to include natural attrition of 1712 positions with the remainder to be reduced through voluntary redundancies, movement to part-time contracts and work sharing. Air France currently employs 49,301 staff under French employment contracts. In Jun-2012 the airline will present new framework agreements to be signed by employee unions. By the end of 2014, Air France aims to increase economic efficiency by 20% through limiting changes to payroll, increasing productivity, not replacing departing staff and by improving processes.

The airline's strategic business plan is divided into the five main areas of:

  • Restructure of short/medium-haul operations into Air France, French regional (Airlinair, Brit Air and Air France Regional) and Transavia France;
  • Redress and reposition long-haul operations with improvements to products and services;
  • Optimise airport services and their economic efficiency through improvements to passenger channels at airports;
  • Accelerate transformation at the cargo division which will see cost reductions, reduction of fleet to four aircraft and full integration with KLM Cargo and Martinair finalised;
  • Develop growth sectors in maintenance and optimise aircraft maintenance through industrial reorganisation to restore profitability of aircraft maintenance area. [more - original PR]

Air France: "Air France is facing a fundamental choice about its future. Our business plan has two ambitions: to ensure Air France returns to profitability and to better serve our customers. If we all make the necessary equitably distributed efforts, there will be no forced departures. The signature of the agreements in the next few days will involve all Air France staff and will illustrate everyone’s determination to put Air France back on the road to recovery. I have every faith in the success of our plan, which will enable Air France to return to the forefront of the major international airlines,” Alexandre de Juniac, chairman and CEO. Source: Company statement, 21-Jun-2012.

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