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At Air France and HOP! harsh cost-saving measures have also been inevitable. Both carriers are adapting to the new environment with tailored strategic solutions for the upcoming future. Workforce cuts are unavoidable.
In a statement the airline reveals that during three months of the turbulence, its “activity and revenue fell by 95%, and at the height of the crisis, the airline was losing 15 million euros per day”.
The 7 billion euros loan from the French State “will enable the Group to withstand the crisis in the short term”. However, additional actions have to be in place as well.
Therefore, predicting a slow recovery to the pre-coronavirus levels, Air France and HOP! are forced to review its businesses and implement some critical changes to secure future operations.
“The transformation is mainly based on changing its domestic business model, reorganizing its support functions and continuing to reduce its external and internal costs,” Air France says in a statement.
One of the most painful changes is related to workforce organisation. As to Air France, a reduction of 6,560 jobs by the end of 2022 and as to HOP! a reduction of 1,020 jobs over the next three years is expected.
Air France and HOP! are working together with the unions to implement plans that give priority to voluntary departures, early retirement arrangements and professional and geographical mobility.