Hundreds of workers of Air France's Dutch subsidiary KLM gathered at its office in Amstelveen, Netherlands, on Thursday to deliver a petition voicing support for the subsidiary's CEO Pieter Elbers. Elbers' 4-year term expires in April, and Air France's board is due to meet in Paris on Feb. 19 to discuss strategy ahead of earnings on Feb. 20. New CEO Ben Smith has pushed for deeper integration among the airline's operating divisions since his appointment last autumn. KLM has fiercely guarded its structure and brand since its acquisition in 2003, leading to tensions between Elbers and Smith. The petition was signed 25,000 times by KLM employees, out of 35,000 total, in a strong display of support for Elbers. Signatories credited him with the airline's success and said they were afraid of the consequences if he is dismissed. "There would be a very real risk of unrest among the employees and unclear and potentially unstable management if Pieter Elbers were to be forced to step down," a letter accompanying the petition and addressed to Air France chairwoman Anne-Marie Couderc said. The relative outperformance of the Dutch subsidiary under Elbers has also caused tensions within the group. Air France was hit by repeated costly strikes, even as KLM staff weathered successive rounds of cost-cutting and layoffs.<br/>
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Indonesia’s Garuda has slashed ticket prices by 20%, the company said on Thursday, following a public outcry over high fares and a call by the country’s president for airlines to offer cheaper tickets. The move applies to all of Garuda’s domestic routes as well as those of its low-cost subsidiaries Citilink Indonesia, Sriwijaja Air and NAM Air, executives said. “This is in line with the aspirations of Indonesians, a number of national industry associations, and the (wishes of) the president of Indonesia, who wants a reduction in flight prices to support economic growth, especially in the tourism sector,” Garuda CE Ari Askhara said. The price cut would not affect the airline’s income because it would help to increase the number of passengers, he added in a text message. President Joko Widodo, who is seeking re-election in April, asked airlines this week to cut prices to help the hospitality industry boost occupancy rates. There have also been complaints from consumers over a spike in fares.<br/>
Italy’s government wants to continue to play a major role at troubled carrier Alitalia, after Delta and UK discounter EasyJet said they’re interested in joining a rescue plan for the company. After the two airlines confirmed Wednesday that they could potentially team up to run Alitalia along with state railway Ferrovie dello Stato, Economic Development Minister Luigi Di Maio said the Treasury could end up owning a stake larger than 15%, Ansa news agency reported, citing union sources. State-owned Ferrovie will take the lead in the latest bid to revamp the carrier, almost two years after the airline was placed in administration for the second time in a decade. Di Maio, whose Five Star Movement has campaigned to save jobs at distressed companies around the country, sees "great potential" for Alitalia, Ansa reported. Di Maio, who effectively runs the government along with fellow Deputy Premier Matteo Salvini, said the state’s involvement will safeguard employment at the carrier. Ferrovie said Wednesday that discussions among the potential partners will focus on “defining the main aspects of the new Alitalia plan.” EasyJet has confirmed talks on “forming a consortium to explore options” for the Italian carrier’s future. Delta said late Wednesday that it submitted a non-binding letter of interest to Ferrovie concerning “a consortium approach in a future Alitalia together with EasyJet.” Neither airline disclosed details on their possible roles in resuscitating the Italian airline.<br/>