(MENAFN) Air France revealed that it had made the decision to cut about 800 jobs over three years as well as reduce its fleet and capacity growth in response to declining revenues, Gulf Daily News reported.
The airline said that its decision is the result of its declining revenues in recent years due to steep competition from European rivals and well-funded Gulf airlines, as well as the pilot strike last year, which happened over its expansion plans in the low-cost sector that led it to lost USD575 million.
"The group will have to contend with the weaker unit revenue trend that has developed since the summer of 2014, which requires the implementation of additional measures," it said in a statement.
The airline said that the cuts will involve 500 ground staff and 300 air stewards and stewardesses, adding that it also offered a salary moderation plan to its employees.
Air France, which already cut 8,000 jobs in the past three years under a group-wide restructuring plan, is expected to register an operating profit of more than USD289 million in 2015, with expectations that this profit will rise to over USD700 million in 2017 under these new plans.
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