Air France-KLM seeks job cuts
AIR France-KLM Group, Europe's largest carrier, plans to eliminate more than 5,000 jobs from its French workforce as it seeks a return to profitability.
The cuts, equivalent to 10pc of posts at the Air France unit, will be achieved through voluntary departures and attrition, with the Paris-based company seeking to avoid firing staff.
The lay-offs come as the group also considers the future of its Dublin-based Cityjet unit. That could include a sale of the carrier or securing third-party investment.
Jean-Cyril Spinetta, who was recalled as Air France-KLM chief executive officer last year after a profit drop forced the exit of his predecessor, said in January that he was seeking a deal to deliver more than €2bn in annual savings that he reckons are needed to secure the long-term future.
"Air France is facing a fundamental choice about its future," Alexandre de Juniac, CEO of the Air France division, said.
"Air France remains a high-risk stock as the market doesn't stand still and the environment remains uncertain, but I'm sure that it's going to be one of the big airline companies that will survive," said Stephen Furlong, an analyst at Davy. (Bloomberg)