Air France-KLM plans to cut 7,500 jobs at its French subsidiary. The job cuts will eliminate 6,560 positions at its Air France flagship, while its regional carrier Hop! will lose 1,020 posts.
As Bloomberg reports, the airline does not expect business to return to last year’s level before 2024. During the worst days of the coronavirus health crisis, revenue fell by 95% and losses topped $17 million a day.
Air France-KLM’s Dutch arm (Royal Dutch Airlines) is set to receive a $3.8 billion bailout from the Netherlands, a move that seeks to help it recover from the drastic fall in revenues due to the COVID-19 pandemic.
According to the Dutch Finance Minister, Wopke Hoekstra, the package consists of a $2.7 billion, five-year revolving credit facility from 11 banks with 90% guaranteed by the Dutch government. It also includes a $1.1 billion direct loan from the government repayable by the end of 2026.
In April, the Group received a $10.9 billion state package from France to enable it to remain afloat during the COVID-19 pandemic.
The airline is the flag carrier of France, with its headquarters in Tremblay-en-France. It is a subsidiary of the Air France-KLM Group. As of 2013 Air France served 36 destinations in France and operated worldwide scheduled passenger and cargo services to 175 destinations in 78 countries (93 including overseas departments and territories of France) and also carried 46,803,000 passengers in 2019.