Airline Industry: Air France-KLM tightens belt amid sector gloom

Air France unveiled a management reorganization as part of broader efforts to return to profit, as a key rival underscored the industry’s problems with a warning that a sustained recovery may not arrive for six years.

Air France, the French network of Franco-Dutch group Air France-KLM, said it would restructure itself into eight businesses starting from January 1, 2013.

No new jobs cuts were announced as a result of the overhaul, which is designed to support an existing restructuring plan calling for 5,000 lay-offs company-wide. Air France-KLM shares rose 2.8 per cent earlier in anticipation of the latest organisational moves.

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