Air France In Trouble


Despite the French state owns 14.3% of the Air France-KLM parent company, the aircraft would not be salvaged, he said.

Air France shares continued on their downward spiral today following the shock resignation of CEO Jean-Marc Janaillac over the weekend.

'Be responsible. The survival of Air France is in the balance, ' he added.

Shares in Air France fell 14% in early Monday trading, reacting to the latest events at the troubled airline.

"Air France will disappear if it does not make the necessary efforts to be competitive", he warned.

The survival of strike-hit Air France is in the balance, according to the country's economy minister.

On Sunday, Mr. Le Maire disclosed to French news channel BFM: "I approach everybody to be mindful: group, ground staff, and pilots who are requesting unjustified pay climbs".

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Regardless of the strike, the carrier demanded that it is ready to keep up 99% of whole deal flights on Monday, 80% of medium-pull administrations and 87% of short-pull flights.

Air France-KLM CEO Jean-Marc Janaillac announced his decision to resign Friday as Air France crews and ground staff held their 13th day of strikes over pay and rejected the company's wage proposal.

The airline said: "Air France deplores the continuation of these strikes even though the period that opens does not allow to pursue any negotiation".

Societe Generale analysts warned the weaker earnings performance could lead to a rift between Air France and its profitable Dutch partner, KLM. It estimates the industrial action has so far cost it 300 million euros ($357 million). The news came on Thursday May 4following the failure of a pay deal put to the airline staff. Janaillac's resignation was confirmed to the board of directors on Friday May 5.

Others, including the more moderate CFDT union, which had urged Air France to back management's pay proposal, warned that "dialogue was blocked" and said the SNPL was too inflexible.

The government of French president Emmanuel Macron is involved in its own ongoing battle with broad swaths of society which are resisting economic reforms. The agreement, rejected by the trade unions, outlined a 7-percent salary raise between 2018-2021, with a 1-percent salary increase in 2018.