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Air France-KLM to make significant job cuts

The French arm of Franco-Dutch carrier Air France-KLM (AF.FR) will announce on Monday new job cuts after it failed to reach an agreement with pilot unions to help turn around the struggling airline.

"It will unfortunately be a significant job-reduction plan," Chief executive Alexandre de Juniac said on French radio, adding that he would hold talks with unions on Monday.

The board of Air France met Thursday and formally instructed management to come up with new cuts to the carrier's loss-making operations by Oct. 5. No details were provided on the forthcoming plan.

The decision came in response to a breakdown in negotiations with pilots' unions. Talks between the unions and Air France initially aimed to trim 170 million euros ($190 million) annually over the next three years. But pilots refused to fly more hours for the same pay, describing the demand as an effective pay cut.