Air France has detailed the airline’s plans to cut 7,500 seats across its network. Over the next three years, most of these cuts will happen on Air France, while some will happen on HOP! However, the airline also indicated that natural outings would help reduce the unintended nature of some of these reductions.
Job cuts
In a press release seen by Simple Flying, Air France outlined its plans to adapt its workforce for the future. Most of the cuts are expected on Air France. Of its 41,000-person workforce, current predictions show a reduction of 6,560 jobs in the next three years.
Due to a “favorable age pyramid,” according to the airline, the airline anticipates more than 3,500 natural departures. In essence, the airline believes that its older workforce will allow the airline to reduce its workforce naturally.
The rest of the reductions will be in HOP! The regional brand of Air France, the carrier anticipates that the company’s restructuring linked to the expansion of the fleet will see a reduction of 1,020 jobs from the 2,420 of the airline. There are fewer natural outlets at HOP! By the end of 2022, the number of excess staff will be around 820, according to the airline’s latest projection.
Working with unions
Air France is working with its unions to implement plans for voluntary departures, early retirement agreements and “professional and geographic mobility”. There will also be proposals for internal job offers for employees whose job will no longer exist and who do not want to be included in the exit plan.
The final reconstruction plan will be presented in July along with the plan for the Air France-KLM group. This occurs when the operator begins to overcome the current crisis with an eye to the future.
A devastating impact on Air France
The current crisis has had a great impact on Air France. Over three months, the airline’s revenue fell 95%. And, at the height of the crisis, the airline stated that it was losing € 15 million per day.
As a result, the airline sought support. The French government offers guaranteed loans of € 7 billion. According to Air France, this “will allow the Group to withstand the crisis in the short term and is accompanied by strong commitments to guarantee its sustainability.”
Now, in the future, the airline is looking to change its national business model, reduce costs and reorganize its support functions. As part of the loan guarantee, Air France would have to cut some short-range domestic routes to meet environmental restrictions. This is one reason that is driving the restructuring of the carrier and the loss of jobs.
A recovery that takes four years
Air France anticipates a four-year recovery despite increasing its daylight saving time. Most airlines are projecting a recovery period of three to five years. Air France is taking the medium approach here. In particular, the airline observes the following:
“Recovery appears to be very slow due to uncertainties regarding the health situation, lifting of travel restrictions and changing business demand. In this way, even on the basis of ambitious recovery assumptions, Air France predicts that it will not see the same level of activity as in 2019 before 2024. “
Without a doubt, the airline’s route network will look different. Trains seem to be one of the ways the operator can still guarantee domestic connectivity. However, it remains to be seen whether Air France will cut any of its current routes. International long-distance demand appears to be slowing down amid more significant border closings. The carrier has already withdrawn its Airbus A380.
In the future, Air France could work with KLM to minimize the complete loss of service of the Air France-KLM network. Instead, it might be likely that one airline would continue to serve a certain point while another airline would provide a different service. This, however, will likely become clear later this month when the group publishes their plan.
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