PARIS (Reuters) - Air France could cut up to 3,000 more jobs as part of parent group Air France-KLM’s (AIRF.PA) latest cost reduction plans, a union said, as Europe’s weak economy thwarts the carrier’s turnaround efforts.
The company said on Friday that it would unveil new measures in the autumn, including voluntary departures, at Air France’s medium-haul business, as well as industrial and commercial initiatives, although it did not give details.
“The figure going around is between 2,500 and 3,000 job cuts,” Didier Fauverte, general secretary of the CGT union at Air France, said on Tuesday, adding that this would take total job losses to 10,000 over four years.
An Air France spokesman declined to comment on the figures.
Air France-KLM had already renegotiated pay and conditions with airline staff, cutting 5,122 jobs and restructuring its network to cope with soaring fuel costs, a worsening cargo business and tough competition from Gulf and low-cost carriers.
The carrier said on Friday that while measures already taken had enabled its medium-haul and cargo businesses to improve their operating results, it was not sufficient given “weak economic conditions”.
The new cost-cutting plan is expected to be outlined in broad terms to unions at a meeting on Wednesday, followed by a detailed briefing on October 4. The measures would be implemented in early 2014.
A second union source, who declined to be named, said around 2,000 to 2,200 of the job cuts would affect ground staff, with the rest involving cabin and flight crew.
Shares in Air France-KLM were 0.3 percent lower at 6.074 euros by 1441 GMT. The stock has lost around a fifth of its value in the last two months.
Reporting by Cyril Altmeyer; Editing by Louise Heavens