EMCC European Monitoring Centre on Change

Air France

Company/Organisation:
Air France

Geographic Location

Country: France

Company

Sector: Transportation / storage
Transportation and storage
51.10 - Passenger air transport
Number Employed: 49301
Group: Air France - KLM

Employment Effects

Announcement Date: 21-06-2012
Planned Job Reductions min: 5122
Planned Job Reductions max: 5122
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-06-2012
Foreseen End Date: 31-12-2013
Other Job Reduction Measures: 5122

Additional Information

On 21 June, Air France has announced a restructuring plan "transform 2015" with 5,122 job cuts by December 2013. Air France expects 1,712 natural departures and aims to negotiate a departure plan for the remaining 3,410 other employees. The management has started the negotiation process with the unions with the aim to avoid forced redundancies.

The restructuring comes in a bid to increase the competitiveness of Air France by up to 20%, while reducing its workforce around 10% and implementing a freeze on salaries and promotions. The working time of pilots and cabin crew will increase from 530 to 655 hours of flight (730 hours on long distance) and the number of cabin crew members will decrease to one employee for 45 passengers.

Air France also announced to develop its low-cost company Transavia that will recruit 340 pilots. 

Update 14 May 2013: after the signature of an agreement between management and employees' representative of cabine crew in March 2013, the management of Air France has announced to its Central works council, on 13 May 2013, a plan of voluntary departure for 400 employees and other measures as early retirement for 100 others. A total of 500 full time positions will be cut (about 600 to 650 employees according unions). 

As reported, France has applied for assistance from the European Globalisation Adjustment Fund (EGF).