News
Air France strike wipes out many global flights
Sept. 15, 2014, Paris, Fra. - At least half of Air France flights around the world were cancelled Monday as pilots kicked off a weeklong strike, angry that the company is shifting jobs and operations to a low-cost carrier to better keep up with rivals.
September 15, 2014 By The Associated Press
The company's challenges echo those faced by flagship airlines across
Europe as they face tough competition from budget airlines for
short-haul flights and cash-rich Gulf state carriers on long-haul
routes.
In the case of Air France-KLM,
French labour law makes it complex and costly to fire employees or
adjust contracts in times of financial troubles. The carrier announced a
plan last week aimed at saving 1 billion euros ($1.3 billion) over the
next several years, and said it will transfer much of its European
operations — and jobs — to low-cost carrier Transavia.
Air France pilots' unions are calling foul, and called a weeklong
strike starting Monday as they seek better conditions under the plan.
Air France is urging passengers to change or postpone travel, estimating that it can only ensure 48 per cent of flights Monday, and just 40 per cent on Tuesday.
The Paris airport authority said only half of Air France flights were
operating out of Charles de Gaulle and Orly airports. At Charles de
Gaulle on Monday morning, crowds gathered at the Air France counter to
try to change their tickets, and canceled flights were removed from
departure and arrival screens.
"I thought that something was up when I saw that my flight wasn't on
the departures board," said Austrian tourist Alice White. "I hope I will
be back to Vienna in time to be at work."
Budget carrier EasyJet is watching closely — and announced an offer
of extra seats to passengers stranded by the Air France strike.
In Germany, a union representing Lufthansa's pilots says they will
walk off the job at Frankfurt airport Tuesday, preventing departures by
Germany's biggest airline from its busiest airport. The two sides are
locked in a dispute over the pilots' demand that Lufthansa keep paying a
transition payment for those wanting to retire early. The airline wants
to cut those payments.
Other established European carriers have faced similar problems, with many struggling to adapt.
Scandinavia's SAS, under pressure from low-cost airlines including
Norwegian and Ryanair, was close to bankruptcy in 2012 when unions
agreed to a $440 million a year savings package that included salary
cuts and changes to work schedules and pension plans for employees. SAS,
which still has higher operating costs than its competitors in the
region, has since intensified its savings efforts.
Italy's Alitalia is being taken over by the Emirates-based airline,
Etihad, after likewise teetering on the brink of bankruptcy. Unions had
to agree to deep labor force cuts, and the head of Etihad will be
meeting with employees in coming days to discuss the airline's
organization. Etihad is injecting 560 million euros ($750 million) for a
49 per cent stake, and it aims to return Alitalia to profitability by
2017.
