Air France KLM has struck a deal with its KLM pilot and cabin staff unions to resolve a dispute over pensions, the airline said on Monday, adding it would take a charge of E311m in Q3 as a result. It will change to a defined contribution scheme from a final salary pension scheme and KLM will make a one-off lump sum payment of E194m to the pension fund, Air France KLM said. KLM pilots threatened legal action in 2016 if their demands for pension rises were not met. The changes follow similar moves by other airlines, for whom pension scheme arrangements have been a source of tension with employees. Lufthansa and its main pilots union signed a wide-ranging agreement on pay, pensions and conditions this month. In September BA proposed the closure of a large pension scheme, angering trade unions representing workers who have taken industrial action this year in a continuing pay dispute. “Crucially, this removes AF-KLM’s exposure to future deficit payments for these schemes,” analysts at brokerage Liberum wrote, although they kept a “sell” rating on Air France KLM shares.<br/>
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Delta is exploring making Aeromexico a “second-tier” member of the Delta-Air France-KLM-Alitalia transatlantic joint venture, according to Delta CEO Ed Bastian. Delta and Aeromexico launched an antitrust-immunized transborder JV in May 2017. Delta owns 36.2% of Aeromexico. Delta is also part of two antitrust-immunized transatlantic JVs: one with Air France-KLM and Alitalia and another with Virgin Atlantic (Delta owns 49% of Virgin Atlantic). Delta is seeking to form a new Delta-Air France-KLM-Virgin Atlantic JV following a 10% stake purchase in Air France-KLM. The transborder and transatlantic JVs create the odd circumstance of Aeromexico—which is in full partnership with Delta on US-Mexico flying—competing against Delta’s transatlantic partners on Mexico-Europe flying. “We have an opportunity now that we’re in an ownership position at Aeromexico for them to take advantage of the transatlantic JV flows that exist today,” Bastian said last week. “Right now they compete against the European partners.” Bastian said Delta is “looking at a way to bring” Aeromexico into a “second-tier membership” in the Delta-Air France-KLM-Alitalia transatlantic JV. “We’re working with our European partners as well as Aeromexico to try to figure out a way to do that,” he said. “We do see some nice growth opportunities between Mexico and Europe.”<br/>
Delta has more than 1,000 open flight attendant positions for 2018 and the competition is stiff. Last year, 150,000 people applied for around 1,200 flight attendant jobs. So far, Delta has received more than 125,000 applications for this hiring round. So what makes it such a tough gig to land? "You need to not only be a customer service professional, but also a safety expert," said Ashton Morrow, a Delta spokeswoman. It's a long hiring process. New hires go through an eight-week training program in Atlanta where they learn how to handle mid-flight emergencies like a fire or a sick passenger. The company describes the training program as "grueling" and that it will "stretch each trainee to the limit" in a video. Average entry-level flight attendants earn roughly $25,000 a year, according to the company, but can earn more depending upon their schedule. <br/>