Jean-Marc Janaillac, Air France-KLM Group’s incoming CEO, faces all of the same labor problems that bedeviled his immediate predecessor as well as one big new headache: an increasingly public schism between the carrier’s French and Dutch units. Air France unions campaigning to block sweeping cost cuts have attracted the ire of their KLM counterparts, who are angry at the impact a succession of French strikes is having on a group that was formed via a merger in 2004. The two main units have never fully integrated to move beyond national sentiments, with the more efficient Dutch arm largely propping up the group. Concerns that Air France’s woes could impact KLM’s operations entered the political arena last month. Ministers in the Netherlands warned Air France’s new management about pandering to the French arm’s powerful pilot lobby amid worries that a deal would crimp growth at KLM, which boasts much higher productivity levels. With Air France-KLM 17 percent owned by the French state and Janaillac a close ally of President Francois Hollande, the Dutch are especially concerned that the former bus company boss will want to avoid confrontation with French unions ahead of 2017 elections in which his friend may stand for a second term. Temperatures are running especially high because aviation plays such a central role in the Dutch economy. KLM was Europe’s fourth-largest airline before it was bought by Air France, though located in a nation that ranks only 10th in the region by population. Its Amsterdam Schiphol base acted as a hub for inter-continental travel long before the Persian Gulf carriers hit on the idea. Janaillac, at 63 fully 10 years older than Alexandre de Juniac, who he succeeds as head of Air France-KLM on Monday, says he’ll need until November just to understand what’s gone wrong at the company. “By then he’s got to come out quickly with an analysis of where the airline stands and a plan to get everyone on the same page,” said Yan Derocles, an analyst at Oddo Securities in Paris. “At KLM, where suspicion and fear are rife, he has to regain trust and rebuild a group spirit.”<br/>
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Alitalia announced the cancellation of 142 flights scheduled for Tuesday due to strike action which the airline condemned as "incomprehensible". In a statement on Monday it said the flights would be cancelled due to the strike by part of its staff protesting the ending of certain employee benefits. The Alitalia statement apologised to customers for inconvenience, with airline boss Cramer Ball calling the strike action "incomprehensible and unfair." He said it was linked to the recent ending of a "privilege for pilots and staff members" which allowed them to travel for free from different parts of Italy to get to or from their bases in Rome or Milan. The decision to end that arrangement was taken "to save money, and in line with other airlines in Europe and the rest of the world," the statement added. The Fit-Cisl labour union condemned what it said was an "attack on the rights of workers," stressing that Alitalia staff had "always shown a great responsibility and professionalism," including in tough times. "The strike, the first for many years, stems from working and living conditions for staff who are subject to decisions which have never been discussed in advance," said the union's boss Nino Cortorillo. Around 20 flights operated by another Italian airline, Meridiana, have also been cancelled.<br/>