Air France-KLM board agrees to 'alternative' restructuring plan

GMT 09:04 2015 Friday ,02 October

Arab Today, arab today Air France-KLM board agrees to 'alternative' restructuring plan

KLM's President and CEO Pieter Elbers (L)
Paris - AFP

The Air France-KLM board on Thursday gave its green light to an "alternative restructuring plan", the company said, following the failure of negotiations with the pilots' union.

"This plan, including a reduction of activity by Air France in 2016 and 2017, in order to guarantee the economic objectives and the company's future, will be presented Monday" to the company's central enterprise committee, the airline management's statement said.

On Wednesday, management had revealed that negotiations with the union representing Air France-KLM pilots on its initial restructuring plan had failed, opening the way to establishing a "Plan B", which is expected to include a 10 percent reduction of long-haul flights and a delay in its orders for Boeing 787s.

"Faced with the impossibility of signing accords that would allow Air France to put in place measures leading to a return to lasting profitability, the administrators consider it indispensable to have an alternative plan," the statement said.

Air France-KLM is looking to boost its competitive edge against its main European rivals, Lufthansa and British Airways-Iberia.


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