Air France-KLM CEO inherits group in turmoil as Dutch stew
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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Air France-KLM CEO inherits group in turmoil as Dutch stew
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/>
