Alexandre de Juniac, the chief executive of Air France-KLM, will step down in July to take the top job at the air-transportation industry group International Air Transport Association, the company said Tuesday, reports The Wall Street Journal.
The council of IATA governors Tuesday offered the job of director general to Mr. de Juniac to succeed Tony Tyler, who served for five years, the company said. Mr. de Juniac’s appointment still needs the approval of the association’s general assembly to be held in early June, the company said.
Air France-KLM’s board started a succession process to find a new chief executive to replace Mr. de Juniac with the support of a headhunting consultancy.
Mr. de Juniac would be the first leader of a French airline to take the top job at IATA.
Since taking the top post at the French arm of Air France-KLM in 2011, Mr. de Juniac has carried out cost-cutting plans and refocused the company by developing its low-cost unit, Transavia. He took over as CEO of the whole group in 2013. As a result of the restructuring and, crucially, cheap fuel, Air France-KLM last year booked its first net profit in eight years.
His departure likely will disappoint investors who liked his action on restructuring despite the difficult environment, said Nomura analyst James Hollins in a comment Tuesday.
On the upside, however, bringing fresh blood at the helm may “inject a deeper sense of urgency across the group for the need to deliver meaningful cost cuts and strategic progress with Transavia,” Mr. Hollins said.
Mr. de Juniac takes over the international airline group at a time of deep divisions among some of its members.