Where Does Air France-KLM Go From Here?
Skift Take
Until Air France-KLM implements a long-term cohesive strategy, it probably will keep falling behind its main competitors, International Airlines Group and Lufthansa Group. But unless the macroeconomic environment changes, it should be OK. Even with rising fuel prices, now is a good time to be in the airline business.
If you must run a massive global airline with three CEOs working as a committee, amid labor unrest with major labor unions, now's probably not a bad time for it.
Yes, fuel costs are rising, but prices remain far below their peak. Most other indicators are strong and demand for air travel is booming, particularly across the Atlantic. Even legacy airlines with suspect business models are making money, despite competition from low-cost carriers.
Perhaps with less favorable trends, Air France-KLM might be in trouble. Its CEO, Jean-Marc Janaillac, resigned last month after Air France's unions signaled they would reject his offer for a modest raise. It is temporarily being led by three executives: KLM CEO Pieter Elbers, Air France CEO Franck Terner, and Frederic Gagey, chief financial offer of Air France-KLM.
I spoke with Elbers this week in Sydney at the IATA Annual General Meeting. It's his job to spin, but he said the company is in a "stable situation," while executives wait for
