Air France-KLM starts search to replace head of Dutch arm

Air France-KLM’s board has begun a search to replace the head of its Dutch arm in a move that could give CEO Ben Smith a fresh start in improving relations between its two flag carriers. “Pieter Elbers will not enter into a third term as CEO and president of KLM,” the group said Thursday. “This enables the supervisory board of KLM to start a thorough process for a successor in a timely manner.” Elbers has had a tenuous hold on the job for some time due to his at-times troubled relations with Smith, who has sought to carry out reforms that would make the French and Dutch sides of the group cooperate more effectively. The KLM chief survived a showdown two years ago only after Smith was handed greater governance powers. While Elbers said in a separate statement from KLM that he’s “handing over the baton,” it’s not clear whether he’ll finish his term, which ends on May 1, 2023. Air France-KLM has survived the pandemic on successive bailouts from both France and the Netherlands, with the French emerging as the biggest shareholder with a 29% stake. The newfound dominance has gone some way in quelling infighting between the two sides. The countries and carriers have often been at odds since the 2004 merger of their respective national airlines, with the Dutch arm long resenting French control. Air France also has weaker profitability than KLM and history of labor conflict.<br/>