Air France-KLM has agreed to pay $87m in settlement for civil damages relating to price fixing in its cargo division. It joins the likes of British Airways, Cathay Pacific, Qantas and Korean Air, which have all paid significant fines following an undercover investigation into global air freight price fixing between 2000 and 2006.
Italian flag-carrier Alitalia has joined a trans-Atlantic venture with Air France-KLM and Delta Airlines. With the addition of the rejuvenated Italian carrier the venture now represents approximately 26 per cent of total trans-Atlantic capacity – with 250 flights and approximately 55,000 seats each day.
Air France-KLM has reported a record loss of €1.56 billion in what its chief executive described as the airline’s “annus horribilis”. After a year marked by the crash of Flight 447 off the coast of Brazil, Europe’s largest airline blamed the losses on passengers shifting to low-cost carriers and downgrading from business to economy.
Air France-KLM is to cut 1,700 jobs next year after posting a worse-than-expected quarterly loss. The Franco-Dutch carrier, which is already cutting 3,000 jobs this year, reported a net loss of €147m, which it blamed on fuel hedging losses and poor cargo traffic.
Europe’s largest airline, Air France-KLM has issued a stark profit warning, whilst also disclosing that it has dropped into the red for the current financial year.The aviation giant has said its operating loss is running at around €200m for the past 12 months and warned that the outlook appears similarly bleak for the forthcoming year.
The Air France KLM Group’s summer 2009 schedule (29 March - 25 October) has been adjusted in line with the sharp decline in demand caused by the economic crisis which is affecting all corners of the world.
Air France-KLM is to cut as many as 1,200 jobs after weak ticket revenues and dwindling cargo volumes forced a sharp rise in third-quarter losses to €200 million.The Franco-Dutch group unveiled a cost-cutting programme of €1.2 billion. The job cuts, which will include some 450 managers, will be through natural attrition and no one will be fired, spokesman Nicolas Petteau promised.
Air France-KLM has denied negotiating a secret pact to acquire control of Alitalia at some future date, the French group’s chairman said in an interview in Italian newspaper Il Sole 24 Ore.“There is no secret pact, no side letter,” Jean Cyril Spinetta was quoted as saying.
Overall, seat capacity for the Air France KLM Group is to increase by 5.2% in the forthcoming 2007/2008 winter season compared to the same season last year, rising 6.2% in the long-haul network and 1.8% in the short and medium-haul network.