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Air France imposes hiring freeze after coronavirus losses

Air France is taking new cost-cutting measures, including a partial hiring freeze, to offset the impact of the coronavirus outbreak on the travel sector, according to an internal letter obtained by AFP.

Air France imposes hiring freeze after coronavirus losses
Photo: AFP

The impact on airline passenger traffic from the COVID-19 virus “increased strongly since last week, with cancellations not only to China and Asia, but to destinations across our entire network,” Air France's financial director, Steven Zaat, said in the letter to managers seen by AFP late Wednesday.

The letter said several of the company's corporate clients had ordered their staff to cut back or eliminate travel.

Keep up with all the latest coronavirus developments in France here.

“The consequences of these measures will necessarily influence our financial trajectory and could put us in a difficult cash flow position if we do not react immediately,” Zaan said in the letter, first reported by the French business daily Les Echos.

Zaat called on Air France managers to cut back on discretionary spending, including on travel and consultants, and to impose a hiring freeze on all services not directly related to operations.

Furthermore, it will begin a review of plans for investments in technology and facilities.

According to Les Echos, Air France's partner airline KLM has issued a similar directive, including urging employees to use up holidays while flights are being cut back.

Air France, KLM and other airlines have temporarily suspended most if not all flights to China, the epicentre of the coronavirus outbreak which has now killed over 2,700 people and infected more than 80,000.

Last week, the International Air Transport Association said it estimates airlines operating in the Asia-Pacific region stand to lose a combined $27.8 billion in revenue this year due to the coronavirus crisis.

Other airlines such as Germany's Lufthansa have also announced measures to cope with the impact.

Air France is also currently dealing with ongoing strike action on its low-cost arm Hop, where pilots are taking five weeks of strike action in a pay dispute.

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COVID-19

Return of the health pass? How France plans to tackle new wave of Covid cases

With a sharp rise in reported cases in recent weeks, France appears to be in the middle of a new wave of Covid infections - so what measures are the government taking to control it?

Return of the health pass? How France plans to tackle new wave of Covid cases

Recorded case numbers in France are now over 90,000 per day, with 133,000 recorded in the past 24 hours – this is a long way short of the 350,000 weekly cases recorded in January but still the highest since May and representing a steady an increase of 67 percent on the previous week.

Hospital admissions are also on the rise – up 32 percent from last week.

So what is the French government doing about it?

Since March, almost all Covid-related restrictions have been lifted in France – the health pass is no longer required for everyday activities such as visiting a bar or going to the gym and face masks are now merely advised in all indoor locations. Only hospitals and other health establishments such as nursing homes still have mandatory rules on face masks and health passes.

For international travel, fully vaccinated arrivals from most countries – including the UK, US and the whole of the EU – need only to show proof of vaccination, while unvaccinated travellers need to show proof of a recent negative Covid test – full details HERE.

Health pass

A proposed bill from the health ministry that was leaked to French media talks about re-imposing some form of pass sanitaire (health pass) to get numbers under control.

Some caveats to add here is that the document is only a proposal at this stage and the government has explicitly rules out – for the moment – reintroducing the vaccine pass. The health pass can be used to show either proof of vaccination or a recent negative Covid test, so it is less restrictive for the unvaccinated.

The document suggests re-introducing a health pass for travel – both to and from France – not for everyday activities like going to a café.

Testing and contact tracing

The bill also proposes extending the software involved in contact tracing and the Covid testing programme until March 2023, although this is described as a ‘precaution’.

Testing remains available on a walk-in basis at most French pharmacies and by appointment at health centres and medical labs. Tests are free for fully-vaccinated residents of France who have a carte vitale. Those are only visiting France, who are not registered in the French health system or who are not vaccinated have to pay – prices are capped at €22 for an antigen test and €54 for a PCR test.

READ ALSO How tourists in France can get a Covid test

Masks

The Minister of Health, Brigitte Bourguignon, said she is “asking the French to wear masks on public transport once again” during an interview with RTL on Monday, June 27th and the Prime Minister Elisabeth Borne has also recommended this. She also recommended wearing a mask in all other enclosed crowded areas, as a “civic gesture.” However, she did not refer to the request as a government mandated obligation.

At present masks are not required, but are recommended, especially on busy services where it is impossible to practice social distancing. In recent days several public transport operators have changed their messaging from saying that masks are merely recommended to be ‘strongly recommended for the protection of everyone’.

Epidemiologist Pascal Crépey said: “In crowded trains, the risk of being in the presence of infected people is high. It would be a good idea for the population to wear the mask, to protect especially the most fragile and avoid massive infection rates.”

A recent poll for the Journal du Dimanche newspaper showed that 71 percent of people are in favour of making masks compulsory on public transport again.

Local measures

French local authorities also have the power to impose certain types of restrictions if their area has a particularly high rate of infections.

At present, none have done so, but Nice mayor Christian Estrosi has spoken in favour of possibly bringing back the vaccine pass over the summer.

Second booster shots

A second booster shot of the Covid vaccine is now available to all over 60s and anyone who has a long-term medical condition or who is otherwise at risk from Covid.

It is recommended that the government increase public messaging advising those in high risk groups to get the second booster shot. The medical regular HAS has advised combining second booster shots with the seasonal flu vaccine campaign in September and October.

France is not, at present, considering widening the campaign to the entire popular, but the EU’s vaccine commissioner Thierry Breton says that if necessary, there would be enough doses to cover the whole population.

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