Air France-KLM Pilots Back Restructuring Plan

 

Air France-KLM Pilots Back Restructuring Plan

Air France-KLM Pilots Back Restructuring Plan

Pilots at Air France-KLM have backed proposals to alter their contracts and working conditions as part of the airline’s three-year restructuring plan, aimed at reducing operating costs and debt.

The SNPL union, which represents more than two-thirds of the pilots, said 67 percent of its members had voted for the plan.

The agreement reached with pilots does not include job cuts, but does feature voluntary transfers with bonuses to Air France-KLM’s low-cost arm Transavia.

The vote comes after ground staff at Air France-KLM also approved similar restructuring measures, leaving only cabin crews in opposition.

Under a three-year plan dubbed “Transform 2015,” Air France-KLM is seeking to reduce operating costs by EUR€2 billion (USD$2.5 billion) with the proceeds going to pay down debt.

Air France-KLM will cut some 5,000 jobs to turn around its short- and medium-haul business, which lost roughly EUR€500 million last year.

Air France-KLM, formed from a merger of French and Dutch carriers in 2004, is snared between low-cost rivals such as easyJet in Europe and Gulf carriers such as Emirates taking chunks of its long-haul premium business.

Air France-KLM has a combined 103,000 workers and is 15 percent owned by the French government.

(Reuters)



Privacy policyContact us | Advertise with us