Air France aims to perform 20 percent cost reduction

on Wednesday, April 4, 2012

Air France aims to perform 20 percent cost reductionAir France, which is the French unit of airline holding company Air France-KLM SA, stated on April 2 that it had the objective of engaging in a 20 percent cost reduction and using these measures to cause its short-and-medium-haul businesses to break even by 2014, according to a statement.

These cuts to controllable costs come as part of the airline holding company's most recent restructuring plan, which the company specified in a statement as "a series of priority actions to return the company to a path of sustainable growth." This document outlined information regarding updates to restructuring plans that were presented at the meeting held on March 29 and 30 with the Central Works Council and key officials.

The company said that its goals for cost reduction were included in the documents that were agreed upon by Air France and its unions.

Air France chief executive Alexandre de Juniac said that the goal of lowering costs by 20 percent is a minimum target, and failing to achieve this could compromise the company's ability to function in the future. He said that obtaining this cost reduction would allow the company to be at the same level as the rest of the industry.

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