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: 52500
Group: Air France KLM

Employment Effects

Announcement Date: 30-04-2015
Planned Job Reductions min: 800
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-11-2015
Foreseen End Date: 01-01-2017
Other Job Reduction Measures: 800

Additional Information

French airline Air France is to cut 800 jobs by 2017. The company has announced the cuts to its Central works council, on 30 April,  in the framework of the new restructuring plan « Perform 2020». Negotiations on a social plan with the union started in May 2015. The end of the negotiation is expected in October 2015 allowing Air France to open a voluntary departure plan in November.

This is the third restructuring plan for Air France: the first in 2010 lead to 5,000 job cuts, the second between June 2012 and June 2013 cut about 5,122 employees and the last one downsized its workforce by 1,826  employees in 2014.  Despite the previous reorganisation, the company is still not competitive in comparison to other EU airlines or Persian Gulf airlines. According to unions, measures may affect all employees including pilots that have been spared in recent reorganisations. With “Perform 2020” Air France wants to increase personnel flight hours, to remove the most unprofitable routes (mainly long-haul routes), to upgrade the comfort of its business cabin and forge new partnerships in Asia. In autumn 2014, the Air Frances’ pilots stroked for 14 days, which cost   the company €500 million.