Air France-KLM union tensions surface in bailout's wake

Air France-KLM's French unions on Monday criticised calls by their Dutch counterparts for KLM to be given greater autonomy, amid signs that a multibillion-euro coronavirus bailout is increasing tensions within the airline group. "It's an illusion to think KLM would fare better without Air France," the French carrier's unions said in an open letter responding to comments last week by Dario Fucci, head of the KLM works council. France agreed last month to issue or guarantee E7b in loans to Air France, with another 2-4b pledged to KLM by the Dutch government. But the rescue package, designed to see the group through the virus pandemic that has crippled the global airline sector, also stoked concern in the Netherlands over possible French nationalisation in a later capital increase. The French and Dutch governments each own close to 14% of Air France-KLM, which declined to comment on the exchange of barbs between its unions. In Dutch media interviews, the KLM union chief suggested the relationship between the airlines and the combined Air France-KLM holding company should be loosened in response to the "exploding" debt on the Air France side. "The prenuptial agreement will have to change," Fucci was quoted as saying. "We want to buy fuel and sell tickets together, but that's the end of it."<br/>