The Politics Behind Air France-KLM’s Peace Deal
Photo Credit: KLM CEO Pieter Elbers will stay on the job but should work more closely with executives at the group level. Pictured is a KLM Boeing 737. KLM
Skift Take
KLM CEO Pieter Elbers has done a fine job with his airline. It is a good thing he is staying put. But how will he work with group CEO Ben Smith? We'll find out.
In his roughly four-year tenure as top boss, KLM CEO Pieter Elbers has molded his Dutch airline into the top performer in the Air France-KLM Group, leading it to major profits while its French cousin struggled with labor and operational issues.
Yet last week, I suggested new Air France-KLM CEO Ben Smith should have the right to remove Elbers if he wished. Smith, I noted, was brought in to meld cultures and operations at the two airlines, which have maintained mostly separate management structures since the 2004 deal that created Air France-KLM. I argued that Smith, as the ultimate boss, deserved final say on personnel — even if it meant removing a highly respected executive.
Many readers did not agree, writing me to say it made no sense to replace the CEO of the airline that for years propped up the group. It is a compelling argument: How can you punish an executive for good work?
This week we learned Elbers will stay, though his role could change. He'll remain CEO of KLM,
