France’s national flag carrier Air France has decided to cut off 7,500 workers following a downtrend in the aviation industry induced by the corona virus.
But trade unions at Air France’s headquarters have opposed countering the company’s announcement which leads to the Conversation in between the company and union representatives on Air France’s proposal.
The trade unions are outraged that Air France has decided to lay off workers despite receiving about 8 billion of government funding from the French government’s financial aid program in last May.
Trade unions remind that Air France’s decision could agitate the French economy.
Instead of tailoring the company with government assistance, the union leaders have criticize that it has made people unemployed.
After the first round of discussion with Air France’s representatives, the company’s management announced that it would lay off 6,500 to 41,000 workers from Air France, and Air France’s subsidiary Hop! would lay off 1,000 to 2,400 workers by 2022.
It is estimated that Air France will incur a loss of about 84 billion this year.
The airline’s revenue will be reduced by almost half. Some airlines are on the verge of closure. Officials say it will take years for the world’s airlines to return to business or get back on track.
Air France doesn’t expect that action will come back to its pre-pandemic level before 2024.
Due to the corona virus, Air France has reduced its flights by 95 percent in the past three months loosing 15 million euros per day.
The financial assistance provided by the government is given in the form of loans and loan guarantees. The French government has provided about 15 billion euros in financial assistance to the aviation sector.
European aircraft manufacturer Airbus, based in France, also announced on Friday that it would lay off about 15,000 workers to save the company.