Air France-KLM Reaches Agreement With Dutch Pilots

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 [e-mail]

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