New Air France-KLM boss wins deals on pilot pay, integration

The board of Air France-KLM agreed to reappoint the head of its KLM division, the Franco-Dutch airline group said, resolving a standoff over new group CE Ben Smith's plans for closer integration of the two carriers. In a separate advance for Smith the group also signed a pay deal with its French pilots Tuesday, drawing a line under a labour dispute that blighted operations last year. Smith has been pushing for more concerted decision-making between the two brands as well as his own seat on the KLM board, but had encountered resistance from the Dutch carrier's workforce and CE Pieter Elbers. Concerns about the possible departure of Elbers after his KLM contract expires in April led to a show of public support by its employees last week, as well as talks between Smith and Dutch ministers. <br/>