Air France under threat amid strikes: Economy minister

Air France under threat amid strikes: Economy minister

Air France under threat amid strikes: Economy minister

Staff at Air France-KLM have been locked in a dispute over pay since February, with unions demanding 5.1 per cent increases this year, and are set to walk out for the 14th day today.

He warned that the state, which owns 14.3 percent of the group, would not serve as a backstop.

The survival of strike-hit Air France is in the balance, according to the country's economy minister. On medium-haul flights to and from Paris-Charles de Gaulle, the percentage drops to 80%, while it expects to operate 87% of short-haul flights to and from Paris-Orly and the rest of the regional airports.

On April 26, the management of Air France published a proposal for its employees, subject to an online vote.

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.

Janaillac resigned on Friday after striking staff rejected a final pay offer of a 7 per cent wage increase over four years, as they continue to push for a 5.1 per cent increase this year.

Air France warned that industrial action would continue to affect its services today and tomorrow.

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.

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". There have been strikes at the SNCF rail organization too.

"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.

The company argued it must preserve its ability to stay competitive against low-priced airlines and big-spending Mideast and Asian carriers.

In a statement on its website, Air France said scheduled flights will be disrupted per "due to the confirmation of the strike of several Air France staff unions for Monday and Tuesday".

Philippe Evain, president of the French SNPL pilot union, told RTL radio Monday he was "shocked" by Le Maire's comments, adding that "the survival of Air France is not in question".

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