A recent wave of strikes against Air France, sparked in part by internal issues and in part by opposition to the Macron ‘reforms,’ has resulted in sizable losses and speculation the airline might fold.
The airline’s CEO, Jean-Marc Janaillac, resigned last week over the strikes, which have cut up to 25% of the airline’s flights some days, and the French government has warned it will not bail the airline out. In recent years, government support for ‘flag’ carriers has been waning; some have folded, and Alitalia is on the block with a fall deadline for deal or death.
Dutch newspapers have been speculating about a possible divorce of Dutch carrier KLM from AF if the situation worsens. KLM, the smaller partner in the merged company, has remained profitable, although it’s not clear it could do so independently.
The French and Dutch governments hold minority stakes in the merged company, with stockholders controlling the rest. But under a complicated arrangement, this economic ownership leaves the two governments with political and legal control.
For an interesting article on the status of ‘flag carriers’ from The Telegraph (UK), click HERE.
