New bid to save Air France/KLM market share with call to limit Gulf competition

13/09/2013

As conditions in Europe remain tough, Air France-KLM appears to be seeking new protectionist ways to bolster its market position. Last week a letter from Air France’s unions to the French government was made public, outlining concerns that the country’s air transport sector was under threat.

Calling the situation “a crisis of exceptional gravity, the consequence of which places Air France in serious economic, financial and social difficulties”, it added: “It is clear that further steps will be needed to reduce ...

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Nol van Fenema
September 15, 2013 at 9:44 am
Where have the Air France unions been living in the past two years??
On the moon??
Limiting traffic rights to Gulf carriers??
Distortion of competition??
Either these union folks are totally unaware of the strategic partnership between Air France-KLM and Etihad Airways, or they are deliberately feeding the French government with misleading reports about perceived threats from Middle East carriers to divert attention to the real problem the airline is facing.
The most incredible statement in this story is of course that the unions on the one hand acknowledge that Air France’s labour costs equate to 32.5% of the airline’s revenues (the highest among their European peers), they nevertheless incredulously blame the monopoly of Aéroports de Paris for Air France’s woes, rather than presenting ideas to slash their own unsustainable labour costs.
France is already the sick man of Europe with an unemployment rate of 10.2% and still declining competitiveness.
Surprisingly, the only contribution the unions can think of is blaming Middle Eastern carriers for the airline’s problems and…going on strike to protest much needed reforms of the country’s indebted pension system and its inflated labour costs.
Air France’s “serious economic, financial and social difficulties” have not been caused by the Gulf carriers, but are to a large degree the result of the unions’ ignorance, inflexibility and stupidity. Just like all other government-controlled bodies and organisations in France.

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- David Ambridge
  September 16, 2013 at 6:09 am
  Well said!!
  
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  - Peter Walter
    September 19, 2013 at 6:04 am
    Spot on Nol!
    
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