Air France-KLM - Finlabo Research Equity Report: Fundamental and Technical Analysis and 6 months performance forecast
Provider: Finlabo SIM Spa
Air France KLM SA Updates on Restructuring and Voluntary Departure Plan
Air France KLM SA announced details of its Transform 2015 cost-cutting plan, which it has presented to its Central Works Council . With respect to short and medium-haul, capacity will be further reduced on the French point-to-point Orly-based network and in the regional bases, while, in parallel, Transavia will grow. Cost reduction efforts will be focused on the reorganization of the French stations. With respect to cargo, Air France will cut its full freighter fleet and refocus it on its two Boeing 777Fs. The Company presented a proposed voluntary departure plan covering 1,826 jobs in the following activities: Cargo (282 jobs); Paris-CDG hub (582 jobs); Paris-Orly and regional France stations (719 jobs) and other activities (243 jobs). The broad structure of this proposed voluntary departure plan is identical to the previous plans, and includes a specific plan to support professional retraining. The departures should take place between the end of February and the end of December 2014. This plan will generate an additional restructuring provision of around EUR 200 million that will be accounted for in the September 30, 2013 financial statements. Combined with wage moderation measures, this staff reduction will have an impact of around EUR 150 million on full-year employee costs. Pilot (350 FTEs) and cabin crew (700 FTEs) over-staffing will be addressed in 2014 through other measures.
- Share this
- Digg this