Air France-KLM turmoil

Concern over the future direction of Air France-KLM continued over the weekend as French unions expressed outrage over the appointment of former Air Canada executive Benjamin Smith to head the airline group.

Union officials said they wanted a CEO to defend “our national airline's interests” and expressed fears Smith would attempt to cut wages in a bid to stabilise the troubled airline company.

Air France-KLM named Smith, 46, formerly Air Canada’s chief operating officer, as its new CEO on Thursday, setting off an immediate backlash from the unions. The appointment is being hurried through, with Smith set to start work by 30 September.

The airline group has been locked in a bitter dispute with unions over pay and working conditions since 2014 and is said to have lost more than €400m from strikes earlier this year.

Smith is credited with reshaping Air Canada’s economic structure and transforming the company into its present improved position. His appointment follows the resignation of Jean-Marc Janaillac as Air France-KLM CEO earlier this year (BTN 7 May).

The unions said in a statement: "Other countries and governments show fierce protectionism when it comes to their airlines. How ... could we allow Air France to fall into foreign hands?"

www.airfranceklm.com

www.aircanada.com

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum