Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Sector
Transportation / Storage
Land, Water And Air Transportation
Air Transport
51.10 - Passenger air transport

800 jobs
Number of planned job losses
Job loss
Announcement Date
30 April 2015
Employment effect (start)
1 November 2015
Foreseen end date
1 January 2017

Description

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.


Sources

  • 3 May 2015: Journal du dimanche
  • 21 May 2015: Les Echos

Citation

Eurofound (2015), Air France, Internal restructuring in France, factsheet number 83607, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/83607.