Air France-KLM CEO Ben Smith marked an early victory just weeks after taking the top job by reaching a pay deal with French unions that had eluded his predecessor. The accord includes a wage increase of 2% retroactive to Jan. 1 and another 2% to take effect in 2019, according to a statement Friday. The agreement came after an acrimonious labour dispute that culminated in the resignation of former CEO Jean-Marc Janaillac after his wage proposal was rejected. Shares in the Paris-based carrier fell 3%, taking losses to 39% since the start of the year, as investors digested the costs of the salary increases. The standoff between management and unions, and 15 days of strikes earlier this year had rocked shareholder and customer confidence. The pay deal was signed by a majority of unions, which the airline said represented 76% of employees, but missing among the signatories was the pilots' union, SNPL. Negotiations between that group and management aren't over, SNPL spokesman Philippe Evain said Friday. <br/>
sky
Korean Air Lines is considering a “large order” for widebody aircraft as part of a fleet expansion and to replace aging jets with fuel-efficient ones amid rising oil prices. The airline is evaluating twin-aisle airplanes from Airbus and Boeing, including the A350 and the 777X, President Walter Cho said. A decision on the purchase may be made next year, he said, without elaborating. “We are pleased with our current fleet of Airbus and Boeing, but they are starting to show their age,” Cho said. “We have to do replacement.” While carriers in Asia are adding more planes to their fleets to meet surging travel demand, they are also looking to retire their old aircraft that guzzle more fuel. For airlines in Asia, fuel costs top expenses. The airline also expects demand to grow as its joint venture with Delta, which started in May, brings more traffic into Asia. The airline could exercise options for 10 Boeing Dreamliners and could order more, Cho said. It is also looking at Boeing’s mid-range jets with the working title New Mid-Market Aircraft, while it’s not too keen on A330neos at the moment, he said.<br/>
An Argentine airline says 15 passengers aboard a flight from Miami to Buenos Aires suffered minor injuries after their plane hit turbulence. Eight of the passengers were taken in for a second check-up. Aerolineas Argentinas said Thursday that the passengers were aboard Flight 1303 when their plane hit turbulence of "severe intensity." "The incident occurred in the flight phase called 'cruise' and was immediately reported by the captain in charge of the aircraft," it said. "Once the turbulence zone was crossed, the crew in charge of the flight dedicated themselves to assisting the injured passengers and attending to the 192 passengers." The airline said medical assistance teams were on hand upon the flight's arrival at the Ezeiza airport on the outskirts of Buenos Aires.<br/>