Paris warns Air France's survival in the balance

Paris warns Air France's survival in the balance

Janaillac had the support of Bruno Le Maire, France's economy minister who supports Air France management.

The carrier, formed by Air France's merger in 2004 with Dutch KLM, saw shares fall by as much as 13 per cent on Monday as investors digested Mr Janaillac's resignation, the government's stance and the strengthened position of the Air France unions.

During Janaillac's tenure, Air France-KLM struck deals with Delta Air Lines DAL.N and China Eastern 600115.SS , which each acquired stakes of just under 9 percent.

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

Air France said Friday that rising expenses for jet fuel plus a stronger euro will add to the burden caused by a string of walkouts by staff fighting for higher wages.

The rejection by the unions of a 2% wage increase for 2018 led to the call of a third strike this month and the company announced the cancellation 15% of flights this Monday.

Trump warns Americans their rights to own guns are 'under siege'
Just a few days later, though, he met with the NRA's top lobbyist, Chris Cox, and Vice President Mike Pence at the White House. For Robbie Malone, a Dallas-based attorney, Trump's presidency signals a new era of respect for gun owners.

"The future looks turbulent for the company", said Gregoire Laverne, fund manager at Roche Brune Asset Management, who sold his Air France-KLM shares in September 2017. It had predicted 85% of flights would operate: 99% of long-haul, 80% of medium-haul to and from Charles de Gaulle and 87% of short-haul.

"The state is not there to pay off debts, come to the rescue of companies that would not make the necessary efforts of competitiveness", he told the French news channel BFMTV.

He also oversaw the launch of Joon, a low cost subsidiary of Air France, and growth in its maintenance business. The company also had to face the resignation of Jean-Marc Janaillac, president of the group. It estimates the industrial action has so far cost it 300 million euros ($357 million).

France's finance minister has warned that the survival of strike-hit Air France was in the balance following the departure of the company's chief executive over a pay dispute.

Staff and management at the carrier have been locked in a dispute over pay since February.

This is in sharp contrast to its performance previous year, when the shares rose 160 percent as Janaillac initiated reforms to restructure and improve the finances of its French brand, said Roche Brune Asset Management's Laverne.

Related Articles