Air France-KLM to lower headcount

AIR FRANCE-KLM    AIR CARGO DEMAND    AIR FREIGHT TRAFFIC  

Global - Air France-KLM may impose temporary lay-offs or employ current staff on a part-time basis to combat the continued slump in air traffic.

According to a Reuters report, the airline said it saw no sign of a recovery in travel demand, although the severe downturn in passenger and cargo demand seems to have stabilised.

"Air France-KLM must remain competitive. I haven't excluded temporary layoffs. We will watch very closely. These measures should allow us to avoid affecting employment," Pierre-Henri Gourgeon, chief executive of Air France-KLM said.

"We will keep reducing headcount...at a similar rhythm in the years to come," Gourgeon said at the annual shareholder meeting, referring to the 2.5% reduction in jobs in the fiscal year ended March 31, 2009.

In April, Air France-KLM said it planned 2500-3,000 job cuts over the next two years

To reach the targeted headcount, Air France-KLM will use early retirements, sabbaticals, more temporary work contracts and increased mobility of its employees between different activities and regions, said Gourgeon.

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