Air France weighs Joon closure as new CE seeks labour deals

Air France-KLM is mulling the closure of Joon, its newest airline brand, company sources told Reuters, in an about-face that could help new boss Ben Smith address the chronic underperformance of the main Air France business. The discussion about scrapping Joon, which has not been decided, may be a sign of the Canadian CE’s determination to tackle weak Air France profitability head-on rather than mitigate it with lower-cost secondary offerings, as many of his predecessors have tried and failed to do. Smith has said Air France must narrow the profitability gap with its more efficient KLM stablemate. The Dutch carrier recorded an 8.8% profit margin last year, more than double Air France’s 3.7% margin. Joon has proven unpopular with clients, employees and investors alike. <br/>