Air France to develop low-cost services, eyes more savings

Air France flights will now aim for further cost savings. The airline has been struggling for profit for quite a few years, but has so far been unable to cope up with the ever growing losses.

Airline group Air France-KLM recently announced it will be developing low-cost short- and medium-haul services through its no-frills Transavia unit.

The company is also eyeing more savings by implementing its plans.

Alexandre de Juniac, Chief Executive of Air France-KLM, said that a plan for the company will be presented next June. The minimum cost savings being targeted is 20 percent. He said to achieve less would in fact be compromising the recovery and future of the company itself.

In January this year, Air France has already announced a series of urgent steps that would help in saving $1.32 billion over three years.

The recent plans of the company indicate a deeper restructuring and savings of another billion euros.

Air France has taken effective steps to cut costs by 15 percent and improve productivity by the recent setting up of operating hubs in the southern cities of Marseille, Nice and Toulouse.