PARIS: The French government on Friday called on Air France to avoid mandatory layoffs as the airline prepared to announce some 7,500 job cuts to cope with a collapse in travel due to the coronavirus pandemic.
Managers at the airline, part of Air France-KLM Group, are due to meet labor unions in Paris on Friday to detail the redundancy plans affecting some 15 percent of all employees, including pilots, stewards and ground staff.
At least half of the cuts will likely entail voluntary departures and retirement plans, sources familiar with the matter said this week, while 1,000 jobs are likely to be cut at Air France’s “HOP!” airline.
But the prospect of possible compulsory layoffs has raised alarm among workers and the French state, which has granted Air France $7.87 billion in aid to help it survive the pandemic.
“A successful labor reorganization is one where there are no forced departures,” junior economy minister Agnes Pannier-Runacher told Sud Radio on Friday.
Pannier-Runacher said the government’s aid package for the airline, which included state-backed loans, was justified as the carrier was “on the edge,” but called on Air France managers to pursue cutbacks responsibly.
Aircraft maker Airbus’ plans to cut some 15,000 jobs across Europe — with a third of those in France — sparked similar warnings this week, as a wave of restructuring triggered by the virus outbreak begins to hit.
Under CEO Ben Smith, who joined from Air Canada in 2018, Air France-KLM has sought to cut costs, improve French labor relations and overcome governance squabbles between France and the Netherlands, each owners of close to 14 percent of the group.
Air France unions braced for job cut talks
https://arab.news/823ea
Air France unions braced for job cut talks
- At least half of the cuts will likely entail voluntary departures and retirement plans
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.
