Air France has increased its savings target by €30 million to boost competitiveness.
Air France is hoping to close the gap between itself and Europe’s other big airlines – including Lufthansa.
The company hopes that it can slash €500 million off its operating bill in 2011.
Air France’s chief executive officer Pierre-Henri Gourgeon announced last week (September 9th) that the company was set up to beat its previous savings target of €470 million by €30 million.
“Our competitiveness can be improved, and must be, compared with our biggest rivals,” he claimed.
The announcement could point to potential ticket price reductions for Air France customers.
Air France’s share price has been struggling in recent months thanks to wider economic turmoil and so-called “competitive devaluation of the pound”, Mr Gourgeon claimed.
The firm has already frozen recruitment until the company’s performance improves.
Air France has been performing well in the international, long-haul sector, with bookings for flights to India increasing by 7.6 per cent year on year.
Written by Erin Marshall
