Air France-KLM calls for talks with unions over cost-cutting plans

Air France-KLM calls for talks with unions over cost-cutting plans

The boss of Air France-KLM today called on union leaders in France to negotiate on cost-cutting plans as the carrier reported improved third-quarter results.

The airline achieved an operating result up by €321 million to €898 million for the three months, excluding the cost of strike action which hit the carrier in September last year.

Like-for-like revenues rose by 4.2% to €19.7 billion against the same period last year with the fuel bill down by more than 23%.

Chairman, Alexandre de Juniac, said: “A favourable environment, principally characterised by lower fuel prices and strong demand over the summer, resulted in an improvement of Air France-KLM’s results during the third quarter and first nine months of 2015.

“Such circumstances came in addition to the positive effects of the Transform 2015 plan implemented since 2012.”

He added: “This improvement is however not sufficient to bridge the competitiveness gap with our competitors or to generate the financial resources required to finance the group’s growth.”

Implementation of the carrier’s Perform 2020 restructuring plan is “vital since unit cost reduction is Air France-KLM’s main lever enabling the group to return to a profitable growth path in a highly competitive environment”.

De Juniac said: “The management invites union representatives to resume negotiations as soon as possible as they are crucial for the success of this plan.”

Air France-KLM signed a contract last week with joint venture partner Delta Air Lines to transfer six pairs of slots at Heathrow for $276 million.

“The group was already making these slots available to Delta for several years, meaning that its flight schedule at London is not affected by this operation,” the carrier said.

“By taking ownership of the slots, Delta will enhance its ability to provide long term continuity and stability, as well as flexibility, on the route network operated from London Heathrow.”


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