September 5, 2011 / 9:31 AM / in 8 years

Air France-KLM to unveil new cost cuts - report

An Air France Airbus A380 lands at Dulles International Airport in Virginia June 6, 2011. REUTERS/Gary Cameron

PARIS (Reuters) - Air France-KLM (AIRF.PA) is set to unveil a new series of cost-cutting and capacity-reduction measures as it faces a possible economic downturn, Les Echos reported, without citing sources.

The moves could be announced on Monday by Air France-KLM Chief Executive Pierre-Henri Gourgeon during a meeting scheduled with union representatives, the newspaper said.

A decision over the purchase of around 100 long-haul planes could be reached during a board meeting in New York on September 15, the newspaper added.

The Franco-Dutch airline is looking for 100 aircraft in the mid-sized 250-300-seat range and is weighing Boeing’s (BA.N) 787 Dreamliner up against Airbus’s EAD.PA future A350.

Air France-KLM had no immediate comment.

The airline said on July 25 it was halving its planned winter long-haul capacity growth to 2.7 percent from 5.1 percent to shore up its aim for an operating profit in 2011.

It also said it was pushing some short-haul operations out to provincial French cities to help drive down costs further.

Reporting by Matthias Blamont and Marie Mawad; Editing by Will Waterman

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