Air France restructures for profits

As part of its vast plan to return to profitability, French carrier Air France has presented their strategic business project to the Central Works Council.

Under the airlines new framework, the changes in staff numbers from December 2011 to December 2013 will result in a staff reduction of 5,122 jobs by 2014.

However, the airline has said that all departures would be voluntary if the new framework agreement can be signed with unions.

“Air France has chosen to work in complete transparency and to privilege social dialogue to find structural and sustainable solutions, included in corporate agreements,” An airline statement read.

The airline stressed that the new framework agreement is “a major condition of the company’s recovery.”

Air France said the Central Works Council would have draft agreements for signing by unions on 28 June 2012.

If employees sign the new agreements, Air France has pledged not to make redundancies and to implement various measures to support the necessary reduction in employee numbers.

By the end of 2014, the airline plans to increase economic efficiency by 20 percent by not replacing staff that leave, improving efficiency of time worked and by improving processes.

Air France chairman and chief executive Alexandre de Juniac, said the airline is “facing a fundamental choice about its future”.

“If we all make the necessary equitably distributed efforts, there will be no forced departures,” Mr De Juniac said.

“The signature of the agreements in the next few days will involve all AirFrance staff and will illustrate everyone’s determination to put Air France back on the road to recovery.

Sourced: .etravelblackboardasia