Air France plans to offer approximately 8 300 people incentives to leave the airline, with the aim of reducing costs without creating a reaction policy after receiving a massive state bailout, people familiar with the proposal.
Air France-KLM unit to request the voluntary departure of nearly 300 pilots, 2,000 cabin crew members and 6 000 staff on the ground, according to the people, who asked not to be named because the plans aren’t public. The cuts could affect 17% of workers, but this may change after the union and management talks, they said.
A spokesman for the Paris-based company, declined to comment.
Europe is the second-largest airline is preparing to unveil the plan in the coming weeks as part of a strategic review commissioned by the Chief Executive officer of Ben Smith. The cuts add to thousands of jobs in the sector in Europe.British Airways has created a political firestorm, with movements at the scrap of 12 000 jobs, whileDeutsche Lufthansa AG may have to 22,000 employees declared surplus as it shrinks operations.
Air France-KLM is looking to offload workers following the receipt of a € 7 billion ($7.9 billion) rescue plan of the French government, including direct loans and state-backed trade finance. Under the terms of the rescue of the French company, which employs over 46 000 people, has agreed to 40% cut in domestic capacity by the end of next year and lower carbon emissions.
At the same time, Smith is under pressure to avoid forced redundancies, with Junior Transport Minister Jean-Baptiste Djebbari said Wednesday that the revamp can be achieved“without social suffering” and should include voluntary departures. French car manufacturerRenault SA, which has also agreed to help, has been at the centre of a storm over travel for similar reductions.
The carrier KLM arm is in talks about a rescue plan for Dutch up to 4 billion euros and has already put in place a plan of voluntary departure, Smith said last month. He then stated that a “similar project” was under discussion at Air France and also to encourage staff to move to Paris in the provinces.
Still, the French division has lost € 200 million in 2019 and Smith has warned that a voluntary plan may not be enough to turn around a brand, he said, need an “accelerated review” to respond to environmental constraints and targets and to reach the balance point of the next year.