Air France-KLM plan to cut €2 billion debt

Group intends to restructure costly medium-haul operations

Air France-KLM has presented details of its 2012-14 plan to return to profitability. The group aims to cut costs and restructure short and medium-haul routes, ultimately cutting €2 billion from its net debt.
Half of the effort to cut the debt will be made in cost savings. The rest will be achieved by implementing a “significant increase” in productivity, restructuring the group’s loss-making medium-haul operations, pulling back capacity growth to 5% and postponing some aircraft deliveries. Air France-KLM wants to restrict its investment program to €5 billion over the next three years.