Air Canada exec to become new CEO of Air France-KLM

Air Canada exec to become new CEO of Air France-KLM

Air France-KLM named Air Canada executive Benjamin Smith as its new boss on Thursday, opting for an outsider to steer the airline group through a fraught stand-off with unions at its French carrier. Janaillac staked his job on a staff vote on his plans - and lost.

"Thus, yes, there's a strong risk of strikes if Ben Smith isn't capable of renewing a dialogue with the unions of Air France".

Recruiting a foreign boss is "inconceivable", nine unions said before the airline's board met Thursday to select a new CEO. "Is it going to hand over the keys to Air France to Americans?"

"Other countries and governments show fierce protectionism when it comes to their airlines".

Smith's nomination could also be accompanied by a shake-up of the company's governance, with the splitting of the roles of chairman and chief executive, which were previously held by the same executive at the company. Atlanta-based Delta is an 8.8% shareholder in Air France-KLM and the two operate a revenue- and cost-sharing alliance on North Atlantic routes.

Air France-KLM (OTCPK:AFRAF, OTCPK:AFLYY) is down almost 5% in Europe, sparked by a hostile reception from unions to its new CEO and as the airline's Dutch pilots threaten to strike over working conditions.

Recent tweaks to a collective agreement with pilots at Air Canada's low-cost Rouge unit allowed the carrier to use more narrow-body planes for the subsidiary, a "weapon" Air Canada can now use to compete against ultra-low-fare upstarts such as WestJet Airlines Ltd.'s Swoop and Edmonton-based Flair Airlines, Kokonis said.

Netflix is testing video "recommendations" between episodes
Now Netflix is getting in on the fun in the opposite direction, testing out peoples' response to ads between episodes of TV. This isn't like Hulu, where you watch content with the full knowledge that you're going to be fed commercials between acts.

Widely tipped in the French media to be unveiled as the new CEO later on Thursday after a board meeting, Smith won approval from the French government which retains influence over the group through its 14.3-percent shareholding. IAG SA - owner of Air France-KLM's arch rival, British Airways - is run by Irishman Willie Walsh.

A senior French pilot on Air France-KLM's board of directors, Paul Farges, had already criticized the potential appointment, calling on France to defend its national interests.

The Air Canada veteran "meets all the conditions set by the state as shareholder", the minister added.

The next pilot walkout is planned for August 27. In 1999, he also simultaneously took on a consultancy role for Air Canada before finally joining the group in 2002.

Walter Spracklin, an analyst with RBC Dominion Securities Inc., said Smith's departure was a setback for Air Canada, "but not irreparable".

"Our deep and highly experienced leadership team will continue to deliver on our global ambitions, achieve our targets and drive our operational performance well into the future".

Related:

Comments

Latest news

Tyson Fury sees off Pianeta then confirms Deontay Wilder fight
The primary reason Wilder is in Belfast tonight is to help secure a deal for a fight against Fury. Fury weighed in at 258lbs, some 18lbs lower than he was for his fight with Sefer Seferi in June.

Wall St rallies on solid earnings, U.S.-China trade talks
The KBW bank index gained 1.06 per cent as bank stocks gained and eased fears of investors who fretted about exposure to Turkey. They then rebounded Tuesday only to fall again Wednesday on rising concerns about China's economic growth.

Everton's Yerry Mina out Richarlison fit for Southampton clash
He was unable to find the target with any of his three shots on goal and struggled to link the play in Southampton's new shape. Mark Hughes needs to find the right formula quickly or Saints could be facing a long, hard season in the Premier League.

Arsenal players must pass ball to Mesut Özil more, says Unai Emery
Calls for Leno to be brought in for the visit to Stamford Bridge to take on Maurizio Sarri's Chelsea seem to have been ignored by Emery though, as he's confirmed that Cech will retain his place between the sticks against his former club.

E-cigarettes can be key weapon in battle against smoking, insist MPs
However, others have argued that relaxing the restrictions ignores the possibility of long-term effects caused by e-cigarettes. Around 2.9 million people in the United Kingdom use e-cigarettes, with 470,000 using them as an aid to stop smoking .

Central Otago $22.3m Lotto winner claims prize
The next chance to win big will be the $20 million Saturday Lotto Superdraw on September 1. "I said, 'Mate - I think I've won Powerball... is this real?'" the victor said.

Chipotle to retrain workers after Ohio illnesses
For example, beans were not held at a warm enough temperature, and lettuce was not properly cooled, Business Insider reported. Health officials said 647 people had self-reported gastrointestinal symptoms after eating there between July 26 and July 30.

Ben Stokes catches Virat Kohli after India fightback
Joe Root and company really need to figure out a way to break this partnership which has contributed more than 130 runs. James Anderson now has 100 Test wickets against India following his late dismissal of Hardik PandyaAnd finally.

Sony Announces 3 Million PlayStation VR Headsets Have Been Sold To Gamers
Sony's VR headset was first announced by it in 2014 at the Game Developers Conference, under the codename "Project Morpheus". One of the games is a VR boxing experience that is based on the Creed movie that fits into the Rocky universe.

Erik Prince's proposal to privatize Afghanistan war not under consideration, NSC says
And a senior State Department official said there's "not a chance" it will be adopted. He gave the Pentagon what they wanted.

South Pacific hit with 8.2 magnitude natural disaster
The Pacific Tsunami Warning Centre said no tsunami was expected, perhaps considering the quake's depth. The quake struck just after midday Sunday and was nearly 560 kilometers deep, the USGS said.

Kim Kardashian got a neon green Lamborghini to match her wig
Kim Kardashian holds on close to husband Kanye West as they leave their hotel on Saturday afternoon (August 18) in Miami, Fla. Earlier in the day, Kim showed off her curves in a hot pink bodysuit while boating, and stayed hydrated with WTRMLN WTR.

Argument Over Aretha Franklin Leads to Virginia Shooting, Witnesses Say
The legend had written a letter to The Wendy Williams Show commenting on the possible casting of Berry. The shooter was arrested, and the victim was rushed to the hospital in serious condition.

India race to 307 for six as Stokes flops on his return
Even Hardik Pandya's dismissal at the close of play, which left India 307 for six at stumps, should not dampen his team's spirits. The third test could be the decider for India as this could be the last chance for the guests to get back to winning ways.

Carlos Sainz to replace Fernando Alonso at McLaren for 2019
McLaren confimed it would confirm its full line-up in due course, with Vandoorne's seat under threat. Formula 1 driver Carlos Sainz will join McLaren for the 2019 season.

Other news