“I hope it’s less than 8,000 jobs,” he said on France Inter. “The state will return a society that becomes profitable and is solid. ”
Europe’s second largest airline is preparing to unveil a workforce plan in the coming weeks as part of a strategic review commissioned by Ben Smith’s CEO.
All the drops add thousands of jobs to the sector in Europe. British Airways has created a firestorm policy with scrap movements of 12,000 positions, while Deutsche Lufthansa AG may have 22,000 employees declared surplus as it shrinks operations.
Air France-KLM has received 7 billion euros (S 11 billion dollars) from France and its Dutch arm is about to raise up to 4 billion euros more in the Netherlands. The French unit, which employs more than 46,000 people, has agreed to cut domestic capacity by 40% by the end of next year and to cut carbon emissions.
The cuts could include about 300 pilots, 2,000 cabin crew and 6,000 ground personnel, or nearly 17 percent of the workforce, according to people familiar with the matter. The company declined to comment.
The Mayor comments show that Mr. Smith is under pressure to avoid forced layoffs, a move the CEO has already said he does not want to do. Yet the government appears to be giving the company some leeway to make voluntary cuts in an effort to make the carrier competitive.
“I’ve always had the same line, on Air France and Renault and other companies, when orders for collapse, air travel dries up, put money in and then say that we absolutely must keep all the jobs would lead to bankruptcy risks, ”Le Maire said Thursday. “If Air France goes bankrupt tomorrow, the 7 billion euros goes up in smoke. ”
Junior Minister of Transport Jean-Baptiste Djebbari said on Wednesday that the domestic makeover can be carried out “without social suffering” and may include voluntary departures.
French automaker Renault SA, which also agreed to help, was in the midst of a storm during trips for similar cuts and a redesign of its own industrial sites.
The KLM arm transporter has already implemented a voluntary departure plan, Smith said last month. He then said that a “similar project” was being discussed within Air France and also to encourage staff to move to Paris in the provinces.
Still, the French division lost 200 million euros in 2019 and Mr. Smith warned that a voluntary scheme may not be enough to revolve around a brand, he said, needing an “acceleration of the overhaul ”to meet environmental constraints of targets and reach breakeven point next year. Plans should include a Transavia arm reduction extension and the interior Hop! the routes. BLOOMBERG