Air France-KLM CE demands proper merger, 14 years after deal

Air France-KLM Group’s new CE says it’s time the carrier’s French and Dutch arms began behaving like a single company -- 14 years after they formally merged. Ben Smith, who started last month, used his first formal call with analysts to make clear he wants the units to resolve tensions over labour strife and unequal levels of profitability and build a business as tight as merged rivals that came together far later. “The more we can do to optimise and do what most major groups do when they consolidate, that’s obviously our goal,” the former Air Canada executive said. “Any internal struggles should be addressed as quickly as possible.” The combination, which Smith called a “unique set up,” dates from Air France’s 2004 takeover of KLM. The two still operate as separate entities, unlike merged airlines in North America. <br/>