Air France-KLM Group is close to naming a CE after an almost 3-month search, with Ben Smith from Air Canada emerging as a leading candidate, according to a person familiar with the matter. The board will meet later this week and could finalise a decision then, said the person, who asked not to be identified. Smith, who is currently COO at the Canadian airline, stands to receive a pay package totalling E3.3m (US$3.74m) a year, the person said, confirming a report in the French newspaper Liberation, which said earlier that the board is set to appoint Smith Thursday. “The recruitment process is ongoing and no decision has been made," a company spokesman said in response to questions from Bloomberg News. Air Canada declined to comment. <br/>
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Pilots at KLM have given the airline until Aug 17 to agree a new collective labour agreement or face industrial action. KLM’s previous pilot CLA expired in Jan 2018, 8 months ago. Talks over a replacement deal have been underway for months, but while a breakthrough seemed likely in May, no agreement has been reached. “We have sent a final proposal to them. They need to agree to the proposal by [Aug 17]. If they do, we have a deal. If not, we have a problem,” a VNV pilots’ union spokesman said. According to both KLM and the union, the sticking point is work pressure and work-life balance. The VNV spokesman said KLM is offering to reduce pilot workload from Sept 2019, but the union is refusing to accept this timeline. <br/>
Saudia says its flights have been affected by a system failure as the Kingdom hosts the annual Hajj pilgrimage. The airline acknowledged the disruption Tuesday without saying how many flights were affected. Saudia said it was using alternative methods to handle flights and to avoid any further delays. “Saudia has taken the necessary measures to contain the situation and reduce the effects of disruptions,” it said. It also said the main operating room has been activated to monitor the situation closely and take further measures when necessary Saudia apologised to passengers that were affected by the sudden disruption and stressed that efforts are continuing to address the flight planning system failure and a return to the regular schedule. The Hajj has already drawn over 1m pilgrims to the Kingdom. <br/>