Transportation
Air France-KLM during the next three years plans to increase capacity "only by a little over 5 percent on a cumulative basis."
The
aviation group noted "the uncertain economic environment and the ongoing
imbalance between transport supply and demand." The decision is part of a
transformation plan announced this week by the Air France-KLM board of
directors that targets "an additional €1 billion in free cash flow over
three years." The plan includes fleet reductions, a freeze on pay raises,
renegotiated employee collective bargaining agreements and restructured short-
and medium-haul operations to be achieved through improved aircraft utilization
and "potentially" more outsourcing in certain areas.