After failed talks with pilots, Air France (EPA: AF)will announce on Monday that it will be cutting a significant number of jobs. The airline was in talks withpilots to boost productivity.
Like many other traditional carriers, Air France is facing increased competition from cheaper rivals from Middle East airlines and regional routes.
On Thursday, the airline warned unions that it would be cutting back operations over the next two years to protect its future. The warning came after Air France’s failed talks with pilots regarding its restructuring plan, dubbed “Perform 2020.”
The deadline to reach an agreement, which was revealed in September of last year,was September 30, 2015. The plan called for an investment review and increased cost reductions.
Alexandre de Juniac, Chief Executive of Air France-KLM, stated that the plan included significant job reductions and details would be discussed with staff on Monday. While the talks have ended, Juniac did note that the door was still open if unions were truly willing to negotiate.
The head of SNPL Air France pilots’ union Philippe Evain stated that it was set to make new proposals and is open to discussions.
Air France shares were up 1.8% on Friday on the news.