Air France-KLM Group to cut capacity by 70-90% amid coronavirus crisis

Air France-KLM Group has decided to cut down its capacity by 70-90 per cent due to a sharp decline in traffic and sales in wake of coronavirus crisis. airline company said in a statement that reduction in capacity will le to grounding of biggest jets including entire Airbus 380 and Boeing 747 fleet.

airline group said that capacity reduction is currently to last two months and it will continue to monitor evolving situation on a daily basis. France has declared a Level 3 public health emergency which requires closure of all n-essential services, leing to a strong downward trend and drop in traffic over last few weeks.

“ Air France-KLM Group is obliged to grually reduce its flight activity very significantly over next few days, with number of available seat kilometres (ASK) potentially decreasing between -70% and -90%,” said company in a statement.

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'Sharply deteriorated financial trajectory'

company said that it has alrey taken exceptional measures to secure its cash flow which includes identifying ditional saving measures which will generate 200 million euros in 2020. Group ded that Air France and KLM will be consulting with ir elected employee representatives on measures to take into account impact of expected decline in activity.

“ deterioration of environment linked to epidemic and sharp reduction in its activity...le group to forecast a sharply deteriorated financial trajectory,” said company in a statement.

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It also welcomed statements of French and Dutch governments where y indicated to support group through all possible means during crisis situation. According to latest report, France has confirmed 5,423 cases of vel coronavirus with death toll standing at 127. Europe has become epicentre of COVID-19 and Italy has been worst-hit due to dely virus with 368 fatalities within a day, bringing overall toll to 1,809.

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