Air France-KLM installed a triumvirate of executives led by its finance chief to run the strike-hit airline while it searches for a new CEO, following a standoff over staff pay. Tuesday’s move is designed to fill a gap left by the abrupt departure of chief executive Jean-Marc Janaillac after Air France staff earlier this month rejected a pay proposal aimed at ending a series of strikes that have resulted in heavy losses. Air France-KLM said the new three-person executive committee would comprise group Finance Director Frederic Gagey, who would take on the role of CE, and the existing heads of the two national brands that merged in 2004: Air France and KLM. Bernstein analysts said in a note that while the move provides some stability, a formal successor was still required. “Whoever that person is will face significant challenges throughout the business, from competitive threats in AF KLM’s key markets, an emboldened union in France which is likely to ramp up its demands and the lack of a coherent long-term strategy,” they wrote. Air France-KLM also named board member Anne-Marie Couderc as non-executive chairwoman.<br/>
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Air France-KLM, Virgin Atlantic and Delta said they signed “definitive agreements” for their transatlantic joint venture on Tuesday. In July 2017, Air France-KLM, Delta and Virgin Atlantic announced plans for Air France-KLM to acquire 31% of Virgin and for Delta to take a 10% stake in Air France-KLM. On May 15, the three airlines issued an update to say they had finalized the terms of the deal, which will now be put forward for regulatory approval. “Upon completion, Air France-KLM will acquire a 31% stake in Virgin Atlantic currently held by Virgin Group for GBP220m. Virgin Group will retain a 20% stake and chairmanship of Virgin Atlantic. Delta will retain its 49% [Virgin Atlantic] stake,” the airlines said. The agreement lays down the governance, commercial and operational terms of the expanded transatlantic JV. “Air France-KLM, Delta and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals,” the airlines said. From a strategic standpoint, the acquisition draws Virgin Atlantic closer to the SkyTeam alliance. Air France-KLM already has a strong relationship with fellow SkyTeam member Delta, which in turn has a maximum 49% stake in Virgin Atlantic. Meanwhile, Delta and China Eastern Airlines are each buying 10% of Air France-KLM.<br/>