Air France announced its strategy to reform its domestic business segment. The airline will make a number of changes in the coming years in order to reduce its short-haul capacity and rectify its weakening financial position.
The company published its guidelines at a meeting of the Central Social and Economic Works Council. The package of changes aligns with the airline’s goal of improving its operational performance and providing high quality services to its passengers.
Air France faces two types of domestic competition: high-speed train lines and low-cost carriers. With the recent growth of those transit methods, the flag carrier’s domestic sector has consistently lost money. It posted a loss of approximately $212 million USD in 2018 alone.
The carrier plans to decrease its short-haul capacity, measured in available seat kilometers (ASK), by 15% before 2022. As a result, around 465 jobs may become redundant. Anne Rigail, the airline’s chief executive officer, aims to support those employees with a gradual transition plan.
Source: Aviation 24