*Update 18.25 CityJet response below*
*Update 16.12 pm CityJet have confirmed voluntary redundancies and are currently putting together a response to me. It’s parent company is Air France and not KLM as I previously stated.
CityJet is to axe half it’s 1000 staff in a bid to save the business a company insider has told Stop City Airport Masterplan. Volunteer redundancies have already begun with forced redundancies to begin shortly. The source has told us full staff cuts will be in effect by June with the total loss of 500 jobs.
CityJet which employs 1000 people is to slash the workforce in a bid to save the company from complete collapse. Air France it’s parent company may have also begun to look for a buyer for the ailing business. Air France is also believed to have told current CEO Christine Ourmieres that it will no longer subsidise CityJet’s losses.
There are no details on expected route closures yet though are expected shortly. They may also begin negotiating with London City Airport in a bid to lower it’s landing fee costs.
Any route cuts are sure to impact London City Airport which is expected to be sold later this year. New London City Airport CEO Declan Collier will have a tough job achieving it’s £1.2bn price tag if it’s biggest customer fails. Mr Collier is said to be considering a planning application for flights during residents quite time in a bid to boost the airport’s potential.
CityJet is London City Airport’s biggest airline. London City Airport has continually used CityJet’s staff in their employment figures to justify expansion and support it’s business model even though it’s staff are paid in Euro’s through Dublin. London City Airport have continually misled on employment figures and refused to respond to the CityJet jobs accusation. CityJet has also refused to respond.
CityJet’s management has long courted controversy. It took on London City Airport’s owners demanding compensation for unacceptable delays which effected its business. It’s then boss Geoffrey O’Brien White said residents quite time on a Saturday was damaging the East london economy and wanted flights during it. Mr White was then replaced by Christine Ourmieres who said her priority was getting the company out of the red. Even after extensive advertising and new routes CityJet still continues to make a loss.
*CITYJET STATEMENT IN RESPONSE TO STOPCITYAIRPORTMASTERPLAN
Over the last two years CityJet has significantly improved its performance due to a range of cost reduction and efficiency measures. The company is continuing to seek ways in which it can maintain its competitiveness in the market and this includes staff negotiations, amongst a variety of other initiatives. The negotiations may lead to a limited number of staff taking voluntary redundancy, but until the formal consultation process has been finalised CityJet is not in a position to confirm the number of staff that may be affected by any changes.
CityJet is working with the full support of its owner, the Air France-KLM Group, and CityJet is not considering reducing its network.
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