Long simmering tension within Air France-KLM erupted into the open after managers at Dutch arm KLM warned of possible strikes and employee unrest should Pieter Elbers be removed as head of the unit. “The possibility of an unexplainable, involuntary departure of our CEO brings a lot of tension in the workforce,” a group of managers wrote in a Feb. 8 letter seen by Bloomberg to the Air France-KLM board. The move “will certainly lead to social unrest and possible industrial actions.” The KLM managers asked the carrier’s directors to renew Elbers’s mandate at their next meeting on February 19. The Dutch offensive is the latest challenge facing Air France-KLM CEO Ben Smith, who took the helm of the troubled airline in September following a series of crippling strikes at the French arm. The parent company is considering replacing Elbers over concern he may not fully support plans to strengthen ties between the two carriers, which came together in a 2004 merger yet have long operated semi-independently and suffer a cultural divide. The letter takes direct aim at the leadership of Smith, who has reached agreements with unions in France, and has made clear the need to bring Air France’s profit margins to a similar level as at KLM. He is seeking to join the supervisory board of KLM. The unfolding spat has also taken on a political tone. Dutch Finance Minister Wopke Hoekstra will seek to discuss Elbers’s position at KLM during a meeting Monday in Brussels with his French counterpart, Bruno Le Maire, according to a spokesperson for the Dutch government. <br/>
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Air France's fleet of long-haul A330s have had an upgrade. The French carrier has lavished E140m to retrofit its Airbus planes with luxurious travel cabins for Business Class passengers. But it seems that this refit does not stretch evenly across the 36 business, 21 premium economy and 167 economy seats. The old business seats have been replaced by fully-reclining beds. Shrinking the number of seats from 40 to 36, according to Seat Guru the new seats have grown in width by an additional 3.8 cm to a generous 57.1cm across. This extra width has allowed Business Class fliers to up their entertainment system from a 16 inch to a 18.5 inch high-definition touch screen. Air France has even found space in business to install a self-service bar. Things are still looking plush in 'Premium Economy' where passengers have been treated to additional storage, more foot space and even a red feather pillow. However, it would appear Air France have been robbing space from the cheap seats to give to the rich. The economy seats have lost 2 centimetres pitch in legroom. <br/>
China Airlines is offering up to US$250 each to passengers whose travel plans have been disrupted by an ongoing pilots’ dispute that has seen at least 86 flights cancelled in the past four days and a share price fall of more than 3%. More than 3,400 travellers booked on at least 20 flights between Taiwan and Hong Kong would be able to claim the compensation for flights that were either cancelled or delayed, an airline spokesman said on Monday. “We will set up a special site at our official website soonest, through which affected passengers can each apply for US$100 per day in compensation, with the amount capped at US$250,” spokesman Jason Liu said. drop of 3.32 per cent. The airlines and the pilots returned to talks on Monday after their previous round failed to yield a resolution, but no consensus was reached again on their major dispute over the pilots’ working hours, according to the Taoyuan Union of Pilots. “Because no agreement was reached, we are forced to continue our strike. We apologise for the inconvenience,” a union spokeswoman said. The union has insisted the company must roster three pilots instead of the current two on flights lasting more than seven hours, to reduce fatigue and flight risks. China Airlines has said meeting the pilots’ demands would create huge costs and seriously cut back the company’s profits. The union has stressed that a seven-hour flight results in a pilot being on duty for a total of nine or even more hours – more than Taiwan’s labour ruling of eight hours of work per day. China Airlines insists its rostering policy is in line with international practice.<br/>