Air France-KLM to cut 3,000 jobs

Some staff of Air France-KLM Ghana could lose their jobs following the intention of the airline to cut between 2,500 and 3,000 jobs by 2014.

The announcement has created some level of uneasy calm in the Ghana office of the airline as the staff fear losing their source of livelihood.

It will also bring to 10,000 the number of jobs lost at the company since 2009.

This year's anticipated job losses, which were hinted by an Air France trade union leader and subsequently reported widely in French media, is to help stem rising costs the two carriers. Although they operate in different names, they are, in fact, a singel company having merged some years back.

The Franco-Dutch airline has been struggling to turn its business around amid a weak economy and competition from low-cost carriers.

It posted losses in the second quarter as its medium-haul and cargo operations continued to suffer from the weak economy, and hope to strengthen its position by paying down debt and reducing staff costs.

The leader of the Air France CGT trade union, Mr Didier Fauverte, is quoted by French media as saying “we've been hearing that 2,500 to 3,000 jobs will be cut."

“Altogether, 10,000 jobs will have been lost over the past four years,” he added.

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An Air France spokesman refused to confirm the figure, according to eTurboNews.

The group said on June  it had lost 163 million euros in the second quarter, compared with an 897 million euro loss a year earlier.

The losses were mainly as a result of plans to shed about 10 per cent of the carrier’s workforce.

Its revenue stagnated in the second quarter as slightly higher passenger traffic was offset by lower revenue per passenger.

Air France-KLM is struggling to compete against low-cost carriers and has said its three-year turnaround plan is on track despite “the persistently touch economic environment.”

A meeting with staff willcomme off on Wednesday, according to eTurboNews, to discuss the required number of job reductions, which are expected to come into effect early 2014.

Graphic Business/Ghana