Daily Management Review

More Than 7,500 Jobs To Be Axed By Air France


More Than 7,500 Jobs To Be Axed By Air France
The impact of he novel coronavirus pandemic on the global airline industry is being reflected throughout the industry.
About 7,580 jobs, or 17.5% of its current workforce is being planned to be cut down by Air France over the next few years, the airline has announced. It is also expected that more than 3,500 of its employees will be reduced in the period through "natural departures" which will also help to reduce the impact of the job cuts, the airline said.
The total number of job cuts at the airline also includes redundancies at HOP!, a regional French operator and a subsidiary of Air France, where there will be lob losses of about 1,200 staff members which is almost about half of the employee strength of the smaller airline. This job cuts is to be implemented within the next three years.
According to the International Air Transport Association, the impact of the pandemic on the global airline industry will lead to a loss of a record $84 billion this year. The industry body also does not expect the global aviation industry to get bank on the path of profitability before 2021 even if there is a sharp economic growth in the world after the pandemic.
Air France said in a statement that it that it lost about €15 million ($16.9 million) per day at the height of the Covid-19 crisis.
"Recovery looks set to be very slow due to the uncertainties regarding the health situation, the lifting of travel restrictions and changing commercial demand," the company said.
The company also does not expect to get back to pre pandemic levels of activities before 2024.
A pledge to support Airbus, Air France and its wider aviation industry was made by France for a package of nearly $17 billion in June. The French government had said back then that Europe cannot fall behind China and the United States in the global aerospace race because of the hit from the pandemic. €7 billion ($7.9 billion) in support for Air France was a part of the €15 billion ($16.9 billion) support package.
Last week, European aircraft manufacturer Airbus announced its plans of axing about 15,000 jobs, which will be more than 10% of its workforce in the next 12 months. Based in France, Airbus has its production uynits in Germany, Spain and the United Kingdom.
And across the Atlantic, American Airlines informed its employees that currently the airline has more than 20,000 employees who are not required by it because of the reduced fall schedule of the carrier. This was said in reference to efforts that the airline and its competitors are engaged in to counter the near collapse of demand for air travel because of the novel coronavirus pandemic.
The airline is also urging its employees to take buyouts or early retirement options so that the workforce is reduced in a natural manner before the company implements involuntary measures such as layoffs.
(Source:www.cnn.com & www.cnbc.com)