The shares of Air France-KLM have fallen by the announcement of renewal of the CEO.

As for the shares of Air France, KLM suffered the biggest drop of a day in a decade, after its chief executive renounced the rejection of a salary agreement by the airline’s staff.

At one point in early trading the shares fell over 14 percent. They are down almost 50 percent since the start of 2018.

CEO Jean-Marc Janaillac’s attempt to cut costs at the carrier to keep up with competition from the airlines and Gulf rivals ran into strong union resistance. In a ballot, 55 percent of employees who voted rejected an offer of a seven percent pay rise over four years.

May 07, 2018
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