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Air France reports €1.2 billion loss for 2012

Air France-KLM reported on Friday a net loss of 1.2 billion euros, worse than a loss of 809 million euros in 2011, but said that underlying prospects were improving despite heavy fuel and restructuring costs.

Air France reports €1.2 billion loss for 2012
File photo of an Air France airplane. Photo: Kentaro Iemoto

Air France-KLM has suffered from a fall of competitiveness in recent years, under the pressure of low-cost operators and the rise of airlines in the Middle East and in Asia.

In January of last year, the company announced a vast restructuring plan called "Transform 2015."

The group cut its operating loss in 2012 to 300 million euros from a loss of 353 million euros in 2011. This was better than the average figure expected by analysts polled by
Bloomberg financial agency of a loss of 334.6 million euros.

In the fourth quarter of last year, the operating loss was reduced to 143 million euros from 202 million euros 12 months earlier. Net debt, which weighs heavily on the group, fell by 540 million euros to slightly less than 6.0 billion euros.

Sales rose by 5.2 percent to 25.6 billion euros.

Financial director Philippe Calavia said that 2012 was an important year for the group because decisions about the structure and transformation of the company had been taken.

In January, The Local brought you the story of Air France's latest venture, Hop! – a new low-cost airline designed to challenge the dominance of Ryanair and easyJet.

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BUSINESS

French court hands Amazon €90,000-per-day fine over contracts

French authorities on Wednesday slapped a €90,000-per-day fine on e-commerce giant Amazon until it removes abusive clauses in its contracts with businesses using its platform to sell their goods.

French court hands Amazon €90,000-per-day fine over contracts

The anti-fraud Direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF) service said the online sales giant’s contracts with third-party sellers who use its Amazon.fr website contain “unbalanced” clauses.

“The company Amazon Services Europe did not comply completely with an injunction it was served and it is now subject to a fine of €90,000 per day of delay” in applying the changes, the DGCCRF said in a statement.

It also urged the platform to conform with European rules on equity and transparency for firms using online platforms.

Amazon said the order would harm consumers.

“The changes imposed by the DGCCRF will stop us from effectively protecting consumers and permit bad actors to set excessive prices or spam our clients with commercial offers,” the e-commerce giant said in a statement.

“We will comply with the DGCCRF’s decision but we absolutely do not understand it and we are challenging it in court,” responded the e-commerce giant in a statement.

Amazon said the clauses that the DGCCRF has ordered removed had, for example “prevented the appearance of exorbitant prices for mask and hydroalcoholic gel during the pandemic”.

In 2019, Amazon was fined €4 million for “manifestly unbalanced” contract clauses with third-party sellers on its site in a case brought by the DGCCRF.

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