“Hard turmoil” in order for Air France-KLM – Capital.fr

The CEO of Air France-KLM said Thursday a period of “hard turmoil” to shareholders, who have largely renewed, and called for support government to ensure the survival of European companies in Europe.

The shareholders of the number two European airline Alexandre Juniac have extended to the group’s director for four years with a score of 94, 21%, allowing it to remain at no surprise as CEO. “I did not promise you today a serene future, I promised you a hard storm and adaptation measures to be courageous and strong,” said he told shareholders at the annual general meeting Franco-Dutch group.

The group, which has eliminated some 8,000 jobs in three years, started in late December 2014 negotiations with KLM staff and May with that of Air France following union elections. Within the French company, where additional 800 job cuts already announced in February, management hopes to complete negotiations in September-October and then announce new “decisions”.

“important” efforts again requested the employees of both companies will take full effect with the mobilization of all stakeholders in the aviation sector, public authorities at airports through directions civil aviation, said Alexandre de Juniac. Air France-KLM and its main competitors, Germany’s Lufthansa and IAG involving British Airways and Spain’s Iberia, are caught between the ambitions of the Gulf airlines on long-haul and competitiveness of “low cost” as easyJet the short haul.

Several shareholders have moved the stock performance of Air France-KLM, down 1% from the beginning of the year at the Paris Stock Exchange (against an increase of 21% for the SBF 120), with limited capitalization to 2.36 billion euros and 7.877 euros during Thursday fence.

The French government has increased its stake on May 8 in Air France-KLM 1.7% to bring it to 17.6% in order to support the adoption of double voting rights at the AGM. The operation was successful, the shareholders who voted maintaining this device of “Florange law” of 29 March 2014 which generalizes the possibility of granting double voting rights to shareholders of a company holding their shares for at least two years to encourage long-term shareholding.