French Government Urges Air France to Pursue Reforms as Strikes Bite
The French Finance Minister raised the pressure on Air France managers and unions to resolve a stand-off over wages, saying the Government would not ride to the carrier’s rescue as it grapples with worker strikes and a leadership vacuum.
Finance Minister, Bruno Le Maire urged the Company and workers to resume talks, delivering a blunt assessment of the airline’s future as he warned the state’s 14 percent Air France-klm stake was no guarantee it would pick up the pieces.
“If Air France does not make efforts to become more competitive, allowing this flagship to be at the same level at Lufthansa and other airline companies, Air France will disappear,” Le Maire told BFM television.
Rivals like British Airways and Lufthansa have already gone through painful restructurings to cope.
Air France-klm, which reported widening losses in the first quarter even as profits at Dutch carrier KLM improved, has reined in growth expectations for 2018 after walkouts at the French airline.