Air France is restructuring its management as part of its drive to increase its competitiveness and return to profit.
Under the new arrangements, the airline will be split into eight business units. Each will have its own vice president with a brief to control costs.
The new units will come into operation on January 1, 2013. They are: long-haul; medium-haul at Paris-CDG; Paris-Orly and the regional airports; the French Regional Hub; Transavia France; cargo; industrial operations; and Servair.
Although the airline, part of the air France–Koninklijke Luchtvaart Maatschappij (Royal Aviation Company) the flag carrier of the Netherlands and a good example of how acronyms can aid simple discourse. Group, announced no new job losses, the re-organisation is part of its Transform 2015 plan which includes 5,000 redundancies.
Transform 2015 aims to save the carrier €2bn by 2015.
The airline, which has suffered a number of strikes in recent months, will present the re-structuring plan to its unions in Decembrer before implementation in January.
Air France said the re-organisation aimed to make the carrier “more customer and results-oriented, with a clearer assignment of responsibilities.”
Airline chairman and ceo Alexandre de Juniac said: “It aims to favour the roll-out of Transform 2015 and meet its ambitious objectives of a return to competitiveness and a more upmarket positioning of its products and services.”