• News
  • Money

Stocks of Air France-KLM slides down: warnings from Government

Stocks of Air France-KLM slides down: warnings from Government

Paris: Air France shares went into a tailspin on the Paris stock exchange Monday after the strike-hit company's CEO resigned and the government seemed to worry about the carrier's very chances of survival.

On Friday Air France-KLM's CEO stopped over the emergency.

Despite the French state owning 14.3% of the Air France-KLM parent group, the loss-making airline would not be bailed out, he said.

Shares were down almost 10 per cent as investors continued to lose faith in the airline, which has been battered by three months' worth of strikes over pay and working conditions.

Janaillac warned a year ago that volatile fuel prices and geopolitical risks could threaten the company's turnaround, but didn't appear to predict the heavy toll that the strikes would take.

Had it been agreed, the pay deal which was put to Air France staff on April 20 would have given them a 7% pay increase over four years including a 2% raise in 2018.

The group's share price has halved this year as it faces increasing competition from low-priced rivals and deep-pocketed Middle Eastern airlines, as well as the prospect of a sustained higher oil price.

Air France said flights for May 7, also a strike day, were operating as forecast.

The government's response is seen as a test of labour reforms launched by French President Emmanuel Macron.

Janaillac will formally resign at a Board of Directors' meeting on May 9, the company said, adding that "it will be their responsibility to take the appropriate measures to ensure the continuity of the group and Air France during the transition period".

A May 4 electronic vote resulted in a "no" vote to the plan by a majority of Air France staff.

Labor unions have scheduled more strikes, leading the French airline to warn that it would cancel about 15% of its flights on Monday.

France's economy minister on Sunday warned that the survival of Air France was now in the balance and could "disappear".

"I will not explain to the French that we will.absorb the losses of Air France while Air France does not make the necessary competitive efforts to be at the same level as its major European competitor".

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Elliott Management Offers Nearly $7B to Acquire athenahealth

Athenahealth said in a statement that it had received an unsolicited proposal from Elliott and that the board will review it. CEO Jeff Immelt joined as chairman this year, can not make the changes it needs while it remains a public company.

United States slams China over bid to police websites

The White House's sharp criticism follows contentious trade talks between senior United States and Chinese officials last week. According to reports, Qantas made changes to its website in January when the issue first arose.

Amazon's 'Transparent' to End After Season 5

Though he never believed he would be fired over the accusations, a text from Jill Soloway proved him wrong. I made her cry. "I dispute her account". "I drove myself and my cast mates insane ", Tambor said.

Elon Musk Plans to Start Candy Company

So whether or not Musk actually intends to start a candy company , the key is to never underestimate the man's random claims. According to CNN , the idea for the candy company stems from a feud between Musk and his fellow billionaire Warren Buffet.

Uber's fatal crash reportedly caused by software that was faultily set up

The NTSB and National Highway Traffic Safety Administration are now conducting separate investigations of the incident. Ultimately, Uber did settle with the family of the victim, but there were some other consequences too.

Sonam Kapoor & Anand Ahuja Mehendi Pics: Dazzling Couple Kickstart This Starry Evening!

While Sonam has always been a fashionista, she has chosen a classy gold and white embroidered outfit for the ceremony. On the other hand Sanjay Kapoor spotted with his wife Maheep Sandhu and attractive daughter Shanaya Kapoor.

John Oliver 'retires' after big surprise from Russell Crowe

He then told viewers he was shutting down the show because there's nothing else to achieve. The video ends by cutting to a plaque which reads, "The John Oliver Koala Chlamydia Ward".

Fergie left off guest list to Prince Charles' party celebrating royal wedding

Starting at 7pm (AEST), Georgie Gardner and Karl Stefanovic will be covering the royal wedding in both London and Windsor . One of Diana's two older sisters, Jane Fellowes, will give a reading during the ceremony to represent Diana's family.

Top four chase heats up in England

Liverpool started on the front foot with Roberto Firmino and Sadio Mane forcing goalkeeper Thibaut Courtois into smart saves. With his humble personality and tendency not to react to spiky moments in a game, he has earned himself a good reputation.

Anger Over How Black Students Were Treated at Graduation

Oliver Telusma spoke to local media saying he was one of those who was manhandled while celebrating with his diploma on stage. The incident forced the University of Florida president to issue an apology for the "inappropriately aggressive" behavior.