Air France-KLM loses $1,1 bn in job cut restructuring costsJuly 30, 2012 - 11:50 AMT PanARMENIAN.Net - Air France-KLM said Monday, July 30 its net loss ballooned to nearly €900 million ($1.1 billion) in the second quarter after it took a hefty charge to pay for restructuring that will see it shed about 10 percent of the airline's workforce, AP said. The Franco-Dutch airline operator said its net loss grew to €895 million in the three months to June 30, compared to a loss of €197 million a year earlier. In a statement the airline said its accounts included a €368 million provision to pay for restructuring that is expected to eliminate 5,122 jobs out of a workforce of 49,301. It expects "natural" attrition to produce 1,712 of the cuts, and then it plans to eliminate 2,056 ground staff, 904 cabin crew and 212 pilots. Last month the airline said it was seeking voluntary changes in union contracts to avoid layoffs but that forced departures may not be avoidable. The airline said "uncertain outlook" for the global economy and volatility in fuel prices and the euro currency "make forecasts for the latter part of the year difficult." European airlines are struggling to cope with high fuel prices and weak economic growth due to Europe's financial crisis. In May, Germany's Deutsche Lufthansa AG said last month it would cut 3,500 administrative jobs to reduce costs after the German company lost $521 million in the first quarter. Air France-KLM's revenue rose 4.5 percent to €6.5 billion in the second quarter, lifted by a 2.4 percent increase in passenger traffic, the company said. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Armenia: Defense Ministry warns against involving army in political processes The Ministry’s statement came after a video surfaced online, showing soldiers joining the protests in Tavush. Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. |