Air France-KLM set to name interim chief today

posted on 15th May 2018 by Justin Burns
Air France-KLM set to name interim chief today

Air France-KLM is reportedly set to name an interim chief executive today to replace Jean-Marc Janaillac, according to Bloomberg and other media outlets.

Janaillac announced he was quitting on 4 May after failing to end a series of labour strikes that have affected the airline’s French arm since February and has reportedly cost it $477 million.

Air France is set to otuline its temporary management team ahead of an annual shareholder meeting in Paris later today. The carrier was thrown into turmoil earlier this month when Janaillac said he would resign after employees rejected a wage offer.

French government ministers have previously said the carrier is underperforming compared to the likes to KLM and Lufthansa and also warned Air France-KLM’s future is in jeopardy and urged local unions to end the conflict.

The interim CEO will have the obejctive of re-starting negotiations with French unions, which demanded a five per cent salary rise in 2018. Management offered a two per cent increase this year, followed by further increases later on.

The French government owns a 14 per cent stake of Air France, and has criticised employees for “excessive wage demands”, putting it heavily down to management’s wants.