Air France shares nosedive after CEO bails (Update)

Air France - JAL Judge Jan-Marc Janaillac announced on Friday that the airline's French business staff resigned from refusing a compensation agreement aimed at ending a strike for months.

In the second half of the morning, the commercial shares of Parisian commercial airlines fell by 12% to end the deal at 13 euros before the transaction price fell as low as 93

Analyst at Société Générale said the employee of the company said, "In addition to letting the group's CEO resign, it made the investment case obsolete."

Societe Generale said, "Since employees voting say" not only risking the cost efficiency goal but also affecting the consistency of the group, "he says, from the previous" purchase "to" sale " We moved to proposal.

Janaillac has been in this position for over two years and has placed her future at the company 's trading staff. They think "to be very wasteful".

Due to intermittent strikes over recent weeks, an average of one-quarter flights were canceled

Since the company has recovered from losses and restructuring over many years, union staff will go out on Monday the 14th day.

Analysts at French brokerage firm Aurel - BGC said, "Because Air France - KLM does not have a boss, I feel that it is very difficult to attract senior management positions."

"I appeal that everyone is responsible: crew, ground crew and pilot call for an increase in unreasonable salary," Economy Minister Bruno Le Maire told the BFM News Channel

According to Air France - KLM 's first - quarter earnings report, a net loss of EUR 269 million ($ 322 million) continued to announce Janelac' s departure. Company

The group warned that this dispute would result in an annual operating profit of at least EUR 0.3 billion, with revenues "drastically decreasing" from last year's 9 billion euros.

Analysts at Société Générale warned that sluggish performance could lead to differences between Air France and its profitable Dutch partner KLM

They said: "KLM Dutch Airlines (of course) may ask why benefits are generated in the Netherlands but cause loss in France."

Keshav R. Murugesh, Chief Executive Officer (CEO) of the WNS Group, says: "WNS is pleased to expand our relationship with Air France - KLM WNS has developed a comprehensive analytically driven next generation technology solution for managing complex business processes in the airline industry .AirFrance - KLM continues to be recognized as an industry leader and shares our ongoing progress with our products. "

Air France - KLM is managed by Air France and the Netherlands airline KLM established in 2004. We will headquarters in Paris according to French law. After that, it became the largest aircraft company in Europe and the world. However, the operating profit of Air France KLM (FK) continues to decrease since 2012 (MarketLine 2014). Air France - KLM is looking for another strategy to survive in the highly competitive aviation industry. According to BBC, FK CEO Alexander claims that it will adopt the LCC strategy to restore and maintain the competitiveness of the aviation industry (Clark 2014).

Air France - KLM is owned by Air France (Air France) and Dutch Airways (Netherlands). It is the world's largest airline and its profits have been decreasing in Europe for the past five years (Market Line 2014). We are actively seeking ways to maintain a competitive position in the European aviation market. The two biggest competitors are Ryanair and EasyJet in Europe. And they learn from the southwestern United States of America and operate a low cost strategy to quickly gain market share. Air France - KLM is planning to compete with them using the same strategy