Air France to downsize to secure survival

Talks with pilot union on restructuring plan fail
Air France says talks with pilots over a restructuring plan have failed, and it will now plan on how to cut its activities over the next two years to ensure its survival.
The failure of talks on improving productivity at the airline mean that the board of the parent company has given the go-ahead to Air France’s management to implement an alternative restructuring plan, the airline said in a statement. The plan will be presented to its Central Works Council on Monday.
“This plan includes a reduction in Air France’s activity in 2016 and 2017 in order to guarantee the company’s future and its economic objectives,” the company said.
As previously reported, Air France has threatened to cut 10% of its long-haul network by 2017 unless pilots accepted cost cuts and changes to working conditions.
Reuters

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