Unions Call For New Strike Air France

French pilot unions have called for a new Air France strike.  Unions have called for a 4-day strike, from the 24th of June up until the 27th of June.

Air France

Resistance Air France 

Air France pilots  are opposing thorough restructuring measures that aim to cut costs by €2bn and are demanding operations from Amsterdam to be carried to Air France. New requirements set by the unions are the addition of 26 new aircraft to the fleet.

Before the first strike in June, KLM staff have said they are supportive of their French colleagues but requested the Air France pilots to call off the strike. In their view striking is not a solution and makes things worse for the struggling airline group

Earlier strikes

In June pilots of the French carrier were also on a strike, resulting in 20% of the daily flights being canceled. The total costs of this strike is estimated to be €40 million. AeroAnalysis expects the new strike to have at least the same impact on earnings.

In 2014, an Air France strike resulted in a €425 million lower income. The strike was called for amidst plans of Air France-KLM to rapidly expand its low-cost carrier Transavia. In 2015, Air France announced it would be cutting 2,900 jobs. At the same time, KLM had reached an agreement with unions to freeze wages and aim for a 4% increase in productivity. Additionally, the Dutch carrier would cut away management layers, shrink its cargo activities and maintenance facility. These steps should realize a €700 million cost savings in 5 years.

 

AeroAnalysis has published an article on SeekingAlpha about the difficult understanding between Air France and KLM

 

No Comments

Post A Comment