French airline Air France and its sister company HOP! will cancel 7580 jobs due to the collapse of air transport following the outbreak of a disease caused by the new coronavirus. That’s about 17.5 percent of the workforce of both companies combined. The company stated this after Friday’s meeting with the unions. According to the airlines, activity in air transport will reach the level of last year at the earliest in 2024.
Air France should leave 6,560 employees by the end of 2022. However, there should be more than 3,500 so-called natural departures, ie cases where people retire and a new worker is no longer accepted for them or by agreement for severance pay. The company has 41,000 employees.
Another 1,020 jobs are to be lost in the sister company HOP !, which currently has 2,420 employees. HOP! is a regional carrier based in Nantes. In this case, too, voluntary departures and retirements will take precedence, Reuters reported.
Air France pointed out that at the height of the crisis, it lost 15 million euros (400 million crowns) a day. So far, the recovery appears to be slow, as the pandemic has not been averted and further developments in the health situation and the lifting of travel restrictions are uncertain.
Air France thus expects air transport activity to reach the level of last year at the earliest in 2024. The company received aid from the state in the form of loan guarantees for up to seven billion euros, which will enable it to overcome the crisis in the short term.