Monday, October 27, 2014 - 09:20
Air France - KLM teetering on bankruptcy: report
According to sources in Paris, the management of Air France KLM has to seriously intervene in the French-Dutch company to avoid technical bankruptcy. "The coming weeks are crucial for survival." Employees and unions fear mass layoffs, particularly in France, but also in the Netherlands. Thousands of jobs may be at risk. Costs have to be reduced by 20 percent to cope with fierce competition from European price fighters and Turkish and Arabic long distance fliers. KLM's new CEO Pieter Elbers does not want to say anything until the quarterly figures are published on Wednesday. The pilot strike aloe cost about half a billion euros. Tomorrow directors and commissioners will meet all day to discuss drastic measures to save the loss making airline from collapse.