Published: Mon, May 07, 2018
Money | By Bruce West

French minister warns Air France

French minister warns Air France

The state owns a 14% share of the company but will not bailout the company the minister warned.

Since the 2004 merger with the Dutch KLM carrier, Air France has been unable to return to profitability.

Bank of America reaffirmed a "sell" rating on shares of Air France-KLM in a research note on Monday, February 12th.

Mr Le Maire told French news channel BFM TV: "I call on everyone to be responsible: crew, ground staff, and pilots who are asking for unjustified pay hikes".

Unionised staff are set to walk out for the 14th day on Monday as they press for a 5.1-per cent salary increase this year as the company recovers from years of losses and restructuring.

Air France-KLM reported a net loss of €269m (£238m) in the first quarter of the year. While nearly all long-haul flights are predicted to operate, one in five medium-haul services from Charles de Gaulle airport in Paris won't, with short-haul trips from Orly also affected.

Strikes over the pay dispute, due to resume on May 7 and May 8, have cost the company 300 million euros (£265.5 million) so far.

Back in 2015, protesters ripped the shirts off Air France executives after the company revealed plans to cut thousands of jobs.

Air France-KLM is one of the biggest full service airlines in Europe, which has been suffering from competition by low cost carriers.

Le Maire said French taxpayers won't bail the company out.

Be that as it may, numerous investigators say Air France has lingered a long ways behind with regards to rebuilding and has neglected to address its proceeded with misfortunes.

The government's response is seen as a test of labour reforms launched by French President Emmanuel Macron.

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