Air France-KLM shares fall, Dutch pilots threaten to strike

Air France-KLM shares fell Friday in response to the hostile reception from unions to the company’s new boss Benjamin Smith, while the airline’s Dutch pilots threatened to strike over working conditions. Unions representing workers at the French company were openly hostile to the appointment of Smith, COO at Air Canada, accusing the group of handing control to a foreigner and not protecting Air France’s interests. Air France-KLM shares fell 4%. “Driving the share price is essentially the discontent of the unions,” said Meriem Mokdad, fund manager at Paris-based Roche-Brune Asset Management. Smith, who will take up his post before the end of September, will have to deal with labour troubles at Air France that have already cost the airline E335m this year, forced the resignation of his predecessor, and seen the group’s shares slump 36% in 2018. French unions are due to discuss another round of strike action on Aug. 27. Meanwhile, in the Netherlands, the Dutch pilots union VNV said it would strike unless the airline’s management comes up with improved offers to ease their workload. The union said work stoppages could begin in four weeks time, after it rejected a last minute offer made by KLM late on Thursday.<br/>