Air France, Hop! to shed 7580 jobs

Andrew Cummings
July 5, 2020

The 7 billion euros in condition support for Air France is in the type of financial loans and loan ensures and element of a broader 15 billion euro rescue plan from the federal government for the aviation sector.

Europe's second-biggest airline will cut 6,560 staff at Air France, with its regional French carrier Hop! losing 1,020 jobs, the company said on Friday.

The group also cited the lifting of vacation limitations and modifying shopper demand from customers as likely lead to for worry in the future.

At the height of the Covid-19 crisis, the business lost €15 million ($16.9 million) daily, Air France said Friday in a statement. "In this way, even on the basis of ambitious recovery assumptions, Air France predicts that it will not see the same level of activity as in 2019 before 2024", said the airline.

"Natural departures", such as retirements and employees who leave of their own accord, are expected to make up about half of the reductions at Air France.

The group joins a long list of airlines that have announced job cuts in recent weeks. It now employs more than 2,000 people.

They're particularly angry that the French government didn't require Air France to protect jobs when it won 7 billion euros ($8 billion) in state bailout funds in May.

The company will present its restructuring plan at the end of July, together with the plan for the Air France-KLM Group, giving priority to voluntary departures, early retirement arrangements and professional and geographical mobility.

Some 100 union members and employees, from cleaning staff to check-in assistants, demonstrated earlier outside the airline's base at Charles de Gaulle airport outside Paris against plans to cut staff after receiving state aid to absorb the pandemic fallout.

Workers warned that job cuts will ripple across the French economy, and said bailout funds should be used to rebuild the company instead of pushing people into unemployment.

In June, Lufthansa said it planned to cut 22,000 jobs, and British Airways said in April that it could cut up to 12,000 jobs from its 42,000-strong workforce.

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