Paris — Air France-KLM shares suffered their biggest one-day fall in a decade on Monday after its CEO said he would resign following the rejection of a pay deal by the airline’s staff. CEO Jean-Marc Janaillac’s attempt to cut costs at the carrier to keep up with competition from budget airlines and Gulf rivals ran into strong union resistance, as had his predecessor’s efforts, raising questions over its ability to reform. Air France-KLM’s board will decide on a management transition plan on May 15. The government said at the weekend that the French state, the largest shareholder with a 14% stake, would not ride to the airline’s rescue. Air France-KLM shares fell as much as 14.3% to an intraday low of à6.93 in early trading, near at their lowest level since April 2017. The stock was down 13.3% at à7.02 by 8.10am GMT. Janaillac’s looming departure — after his high-stakes gamble to put the pay offer to a vote by all employees backfired — was the worst possible outcome, analysts at brok...

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