24 Dec 2012

Deal seals Air France's Tahiti restructure

7:37 am on 24 December 2012

A deal has been struck in French Polynesia between Air France and its Tahiti-based employees after months of negotiations over the carrier's restructure.

The airline wanted to bring in changes aimed at increasing their productivity by 39 percent in an effort to end years of losses on the Paris to Papeete route.

The agreement reached will provide for cuts to some benefits and a wage freeze until 2015 which are expected to save the carrier about three million US dollars in two years.

Reports say there will be no dismissals but seven of the 86 positions in question will be lost because of transfers or voluntary moves.

Air France has three weekly flights from Tahiti to Los Angeles and flies in competition with Air Tahiti Nui.