Air France-KLM scrambled to get its full French fleet back in the air on Monday after the end of a damaging two-week pilots strike that left a number of key questions hanging over the airline’s future, reports The Financial Times.
Airline officials said it would take until midweek to fully restore Air France’s schedule, which was reduced by more than half during the strike.
That figure would exceed the €238m operating profit Air France-KLM reported in the second quarter as it labours to return to profitability after several years of red ink – bottom line losses last year totalled €1.8bn.
Both airline and French government officials stressed that it was the first time in a history of industrial disputes at Air France that the pilots had given up a strike without a clear victory over their demands. The French state owns 16 per cent of the carrier.
The SNPL, the main pilots’ union, called off its action, the longest in Air France’s history, on Sunday despite the breakdown of prolonged negotiations. The union objects to the terms under which Air France-KLM plans a strategic expansion of its low-cost operations to meet competition from airlines such as easyJet and Ryanair.
After backing one key concession to the unions, the socialist government adopted a robust stance, refusing a union demand for an outside mediator at a critical moment in the talks.
“In a nutshell, this could almost be an epiphany for Air France if it allows management to get on and manage,” said Damian Brewer, analyst at RBC Capital Markets.
It estimated the cost of the strike at between €250m-€300m, not counting compensation for stranded passengers and the loss of potential future business.
Read more of this report from The Financial Times.