Air France Enforces 2012 Cost-Cutting Plan for Pilots
May 03 2016 - 4:20PM
Dow Jones News
PARIS—Air France has decided to enforce a cost-cutting plan for
its pilots that was originally announced in 2012 but delayed by
opposition from unions.
The French arm of airline group Air France-KLM will impose a
series of specific measures on its pilots that will result in lower
pay per hour spent flying, the company's human resources chief
Gilles Gateau said Tuesday.
A deadline set by the company for the pilots to accept an
alternative plan that would have resulted in lower paid flight
hours but in more flights had expired Monday without a positive
answer from pilots, Mr. Gateau said.
The decision made by Air France's management comes after several
months of talks with pilots to find ways to cut costs while
avoiding an outright clash like the two-week strike that cost the
company almost €425 million ($489 million) in 2014.
For the past four years, departing Chief Executive Officer
Alexandre de Juniac, has struggled to make his airline more
competitive to stand against increasingly aggressive budget
airlines and Gulf carriers, which have more-efficient cost
structures than legacy airlines such as Air France-KLM.
Emmanuel Mistrali, spokesman for the largest union of Air France
pilots, wasn't immediately available for comment. Mr. Mistrali has
previously said union leaders hadn't rule out a strike if talks
didn't succeed.
Other employee categories such as ground staff and flight
attendants accepted cost-cutting measures in 2012.
Write to Inti Landauro at inti.landauro@wsj.com
(END) Dow Jones Newswires
May 03, 2016 16:05 ET (20:05 GMT)
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