Future of Air France 'in doubt' after boss quits amid strike action


Future of Air France 'in doubt' after boss quits amid strike action

"I accept the consequences of this vote and will tender my resignation to the boards of Air France and Air France-KLM in coming days", said Janaillac after 55.44 percent of Air France workers voted against accepting a pay rise of seven percent over four years.

ValuEngine lowered shares of Air France-KLM (OTCMKTS:AFLYY) from a strong-buy rating to a buy rating in a research note published on Tuesday, April 24th.

They have been demanding a 5.1% increase in 2018 instead - in a dispute that began in February. Zacks Investment Research raised shares of Air France-KLM from a "hold" rating to a "buy" rating and set a $19.00 price objective for the company in a report on Thursday, January 4th.

He said he hoped his departure would spark "a more acute collective awareness" before leaving without taking questions.

Despite the strike, the company says it will be able to maintain 99 percent of long-haul flights on Monday, 80 percent of medium-haul and 87 percent of short-haul.

The 65-year-old chief executive, who had been in the job for less than two years, earlier promised to quit if the pay deal was rejected. Air France-KLM had a negative net margin of 1.13% and a positive return on equity of 38.04%. research analysts forecast that Air France-KLM will post 2.71 earnings per share for the current year.

Air France-KLM stock traded down $0.73 during mid-day trading on Friday, reaching $9.16.

"Air France deplores the decision to go ahead with the strikes as we enter a period that will not enable negotiations to continue in order to put an end to it", the airline said in a statement, referring to a looming period of interim management.

The Air France turmoil has coincided with other strike action as rail workers press on with rolling stoppages to protest President Emmanuel Macron's planned privatization of SNCF, the state-run train operator.

"That has been proved in the cases of the turnarounds achieved by Iberia and British Airways".



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