Franco-Dutch airline group Air France-KLM on Wednesday said it
has reached a wage agreement with Dutch pilots to achieve savings
it is seeking to support its latest turnaround plan.
The agreement with the Dutch airline pilots association VNV
covers the period from January 2015 through December 2017, the
airline said. The accord still needs to be ratified by the
union.
Air France-KLM said pilots have agreed to a freeze on general
salary increases, productivity increases and later retirements.
Pilots would gain access to a profit-sharing system and a way to
benefit from the airline's share performance.
Air France-KLM is seeking new labor terms with a range of
employee groups to restructure its costs amid stiff competition on
intra-European flights from budget airlines and on its long-haul
flights from Middle East carriers.
"The signature of this agreement is a key step in the
implementation of Perform 2020 within Air France-KLM," Chief
Executive Alexandre de Juniac said.
Europe's largest airline by traffic also is in talks with French
pilots over contractual changes. Air France-KLM said it hopes to
complete those talks by the end of September.
Write to Robert Wall at robert.wall@wsj.com
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