KLM subsidiary Transavia is to cut 70 of its 450 ground staff under measures to save €14 million ($15 million) over the next two years. The airline also plans to simplify its fleet by returning three Boeing 757s to lessors by November, leaving it with only 737-700s and -800s, and hopes to increase productivity of flight and cabin crews.

Although Transavia reported €17 million profit before tax on €509 million revenue last year, it now says: "An increase in revenue is an unlikely prospect - certainly in the short term." It blames the cuts on overcapacity and pressure on prices in the continuing downturn in the aviation market.

As well as fleet and job cuts and productivity increases, Transavia, which operates scheduled services under the Basiq Air brand and charter flights, has also moved to ticketless operations and has stopped selling through travel agents, booking both Basiq Air and seat-only charter flights over the web or telephone.

The board of loss-making Italian regional airline Gandalf, based at Orio al Serio airport near Milan, is to decide the company's fate on 30 September. Two options are available given the carrier's financial position - raising new capital or liquidation. New Gandalf president Gabriele Penitenti hopes C&S of the USA will provide new capital.

Source: Flight International