Pressure on Air France-KLM managers to save

Air France-KLM needs savings to close gap with Lufthansa and BA

Battling high fuel costs and poor business-class demand, Air France-KLM says it is demanding deeper cost cuts from its managers this year. €500 million in savings has already been earmarked for 2011, but now chief executive Pierre-Henri Gourgeon says he wants even better productivity and procurement. “Our competitiveness can be improved, and must be, compared with our biggest rivals,” he told journalists at a press briefing.
Air France-KLM’s share performance is down by 55% in Paris this year – the worst performance on Bloomberg’s EMEA Airlines Index. The disadvantage against Lufthansa and British Airways comes in currency exchange rates and higher payroll taxes. The airline has put a freeze on hiring and will trim planned capacity increases in 2012.


Check Also

Lufthansa, profit, 2017, record, Eurowings, pilots, air Berlin, Swiss, Austrian, Brussels, cargo, Spohr, CEO, contract, outlook, fuel

Lufthansa soars to record profits, up 33%

The German giant’s fortunes are boosted by the Air Berlin bankruptcy and by ending a pilot dispute.

SNCF, rail, train, Brittany, Rennes, taxi, plane, air, Caribbean, Air France, France, VIP, station, Orly, airport, Paris, Massy, Fort-de-France, Martinique, Point-à-Pitre, Guadeloupe, Cayenne, French Guiana, Saint-Denis, Reunion

Brittany to the Caribbean in a single booking

Starting today, Air France is teaming up with a combined ‘rail + air’ offer from TGV AIR.

Qantas, branding, marketing, Lufthansa, KLM, United Airlines, livery, design, dreaming, dots, events, special, one-off

Airlines use custom liveries for special events

Qantas, United, KLM and Lufthansa have all revealed eye-catching new livery designs recently.

Boeing, Airbus, A340, dreamliner, goode, space, hidden, room, planes, design, crew, rest, relax

Many planes hide a ‘secret room’

Much of the vacant space on wide-body aircraft goes unused – but not all of it.

British Airways, BA, Iberia, American Airlines, Finnair, oneworld, transatlantic, routes, flights, basic economy, seating, rules

Transatlantic oneworld flights add basic economy

British Airways, American Airlines, Iberia and Finnair will launch a new ‘basic’ fare on some transatlantic flights.

Frankfurt, charges, airlines, airport, Main, Hahn, low-cost, Ryanair, Lufthansa, base, aircraft

Ryanair shifts more routes to Frankfurt Airport

Planes are disappearing from Frankfurt-Hahn since the sale of the airport to China’s HNA Group.