Air France-KLM to remove MD-11F and 747-400ERF to restore profitability
Source:transportweekly 2014-1-21 9:13:00
Air France-KLM plans to remove from its fleet in 2015 two of KLM-Martinair Cargo's freighters, one MD-11F and one Boeing 747-400 ERF, to reduce the size of its fleet to eight cargo planes now that 70 per cent of its air freight flies on passenger aircraft.
As a result, 160 staff will be laid off at the Air France G1XL hub at Paris Roissy-CDG Airport.
Last September, Air France announced it was re-focusing its cargo fleet on two B777F with the phase-out of its five B747-400 extended range freighters (ERFs), only two of which are in service, reported Lloyd's Loading List.
Air France Cargo chief, Alain Malka said the retirement of the B747Fs in spring next year was "a crucial element in returning the company to profitability".
"The B747Fs represent 10 per cent of our activity but 30 per cent of losses. We can't be profitable while they are in the fleet. We expect a marked improvement in our performance in 2014 and 2015 and positive financial results in 2016," Mr Malka said.
The cargo business of Air France-KLM posted an operating loss of EUR184 million (US250.5 million) for the first nine months of 2013, narrowing the EUR203 million year-on-year loss in 2012.
Its cargo traffic, measured in freight tonne kilometres, decreased by 4.6 per cent in 2013 compared to the previous year on 2.7 per cent lower capacity, leading to a 1.3 point decline in load factor to 64.4 per cent.