Air France (AF, Paris CDG) has warned it may cut both its longhaul network and workforce should it fail to make an estimated EUR1.8 billion (USD1.98 billion) in additional cost cuts.
France's RFI says in the event the airline's pilot corps rejects plans to increase its work-hours while keeping salaries fixed, Air France may be forced to could cut 10% or fourteen of its longhaul routes by 2017. In addition, at least ten widebody aircraft could also be withdrawn from service affecting up to 3,500 jobs.
Air France is seeking to reach an agreement on its new restructuring plan by the end of this month.
In July, Air France's Chairman and Chief Executive Officer, Frederic Gagey, revealed that only 50% of his airline's long haul routes were currently profitable. In line with plans to drive that figure up to 80%, reports last week stated Air France-KLM Royal Dutch Airlines was considering setting up a new budget long haul subsidiary that would feature B787-9s while drawing its personnel from the carrier's current pool of pilots and cabin crew.
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