NEW LOWER-COST BUSINESS
Air France pilots back ‘Boost’ project
Approval of new, lower-cost business aims to counter the increasing pressure from rivals and is a booster for Air France-KLM CEO Jean-Marc Janaillac’s earnings strategy
Toulouse — Air France pilots approved the carrier’s plan to carve out a new, lower-cost business to counter increasing pressure from rivals, marking a rare agreement with workers after years of contentious labour relations at the carrier. Flight-deck employees represented by the SNPL union and who account for two-thirds of pilots at the French arm of Air France-KLM Group, had voted 58.1% in favour of the proposal to create the unit, provisionally dubbed Boost, the labour group said on Monday. The approval bolsters Air France-KLM CEO Jean-Marc Janaillac’s strategy to generate consistent earnings in the face of industrywide competition in Europe from both discount regional airlines and high-end Persian Gulf carriers. He has taken a more conciliatory approach towards labour than his predecessor, Alexandre de Juniac, who once proposed forming a new low-cost airline without asking pilots first. In contrast, Janaillac modified a pay-reduction plan to gain employee backing. Air France-KLM ...
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