Air France-KLM faces very difficult year

Airline Air France-KLM is in an extremely difficult financial situation and booked a ‘substantial operating loss’ for the fourth year in a row in 2011, Air France chief Alexandre de Juniac said on Wednesday.


De Juniac told a French parliamentary commission the airline group would book an operating loss of ‘several hundred million euros’. He did not give further details because the books have not yet been finalised, news agency ANP said.
The airline also has mounting debts, he said. ‘We have not been able to finance our investments over the past three years because we do not generate enough cash flow,’ he told the MPs.
Earlier this month, Air France-KLM announced a major recovery plan involving reducing investment by €1bn and generating €1bn through freezing wages and recruitment.
However, wages at KLM will be ‘moderated’ not frozen, indicating the Dutch arm is performing better than the French.

Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation