Air France-KLM Dutch subsidiary to cut jobs, ask for gov't support

KLM, the Dutch subsidiary of Air France-KLM, plans to slash jobs and ask for government support as it cuts working hours by one-third for its entire staff of 35,000 workers amid the global coronavirus outbreak, the company's labour union said on Friday.

A KLM spokesman said the company would issue a statement shortly. "We understand the exceptionally difficult situation the company now faces," CNV labour union negotiator Michiel Wallaard said in a statement. "This amounts to a heavy sacrifice that is being asked of our people."

Airlines around the world are grappling with the consequences of the coronavirus outbreak, with the International Air Transport Association (IATA) estimating global costs would exceed $100 billion. KLM's measures come as it faces restrictions on flying to the United States, China and Italy. Details of Friday's plan were first reported by Dutch broadcaster RTL.

The RTL report said the carrier also planned to cut 1,500-2,000 jobs and would scrap 300 million euros ($330 million) or more in planned investments. It said KLM would cut a quarter of its flights in March and 30%-40% of flights from April to June.

Earlier on Friday, Netherlands Prime Minister Mark Rutte said the government was ready to support KLM and the Dutch aviation industry. ($1 = 0.9023 euros)