Air France risks ‘second tier status’, says chief of parent group

Air France risks being relegated to a second-tier global airline if it does not get to grips with its troublesome pilots unions, says the outgoing CE of its parent company Air France-KLM. Alexander de Juniac, who is stepping down at the Franco-Dutch airline group after three years to lead the aviation industry’s main trade body, said Wednesday that recent battles with the unions had “blown up” the reputation of Air France. He added Air France suffered in “its soul, in its guts” from a two-week pilots’ strike in 2014 over important cost-cutting measures — the worst industrial action in its history — and an incident last year when the company’s human resources director had his shirt torn off by an angry mob. If the company does not find a way to reach a deal with the pilots over efficiency improvements “the risk is that Air France becomes a second-tier player”, de Juniac said. “The world is moving fast and Air France will be left behind.” The comments highlight the immense challenges for de Juniac’s successor at Air France-KLM. It is one of the toughest jobs in global aviation. The new CE — yet to be appointed — must contend with powerful unions, the French government, which has a 17% stake in Air France-KLM, and intense competition from low-cost European budget airlines and Gulf carriers.<br/>