Air France-KLM to slash costs
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Add as a favourite source on Google Add DutchNews as a favourite source on GoogleAir France-KLM is to reduce investment by €1bn and generate €1bn through freezing wages and recruitment, the French-Dutch airline said on Thursday evening.
The aim of the restructuring is to cut net debt by €2bn by the end of 2014.
The group sacked its chief executive Pierre-Henri Gourgeon in October, bringing back Jean-Cyril Spinetta who pushed through the merger in 2004.
‘We have to adjust our capacity for the next few years, whether it’s cargo or passengers,’ Spinetta was quoted as saying by the Financial Times. ‘The offer of transport has outpaced demand in recent years, and that’s weighing on all airlines.’
Wages at KLM will be ‘moderated’ not frozen, indicating the Dutch arm is performing better than the French.
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