07/05/2018
How quickly can a prosperous, one of the largest in the world airline lose 300 million euros? Air France-KLM has shown that 3 months are needed.
Since February the airline's employees represented by powerful French trade unions were striking for 14 days, demanding 5.1% increase in salaries. Air France's executive board, backed by President Macron, wanted to postpone it, offering 7% increase, but within 4 years. However, the offer was rejected, forcing the CEO of Franco-Dutch airline to resign. Having realized that French trade unions are using the national carrier to fight against the modernization of labor market and to maintain their stron position, the government announced it would not rescue the company. According to the highest France's officials, if trade unions do not reach the agreement, the company will collapse.
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Air France’s share price dived Monday after its CEO quit and the French government warned that the country’s flagship carrier might collapse.