Air France cuts costs in restructure plan

Air France, which last month reported a net loss of 809 million euros ($1 billion) in 2011, has made cutting controllable costs by 20% the main plank in its business restructure plan, “Transform 2015”.

The French flag carrier has outlined measures to turn around its air cargo division, which reported an operating loss of 60 million euros.

Air France said: “Confronted with a difficult economic environment and insufficient competitiveness, several improvement priorities have been identified in freight, particularly in the areas of purchasing, fleet and business development via enhanced integration between Air France, KLM and Martin Air.”

New Air France Chairman and CEO, Alexandre de Juniac, said Transform 2015 would “restore competitiveness, win back customers and return the company to a growth trajectory”.