Fourteen months after assuming the role of CEO of Air France-KLM, Ben Smith believes he managed to deliver on his first priority to get Air France “out of crisis mode” and bring stability back to an airline that has suffered from social unrest, a heavily loss-making domestic network, and complexity of brands, fleet types, and aircraft configurations. Labor disputes and three major strikes cost the French airline over a €1 billion in the last few years, “but we have a fantastic level of stability now,” said Smith, speaking at the recent IATA Wings of Change Europe conference. Air France pilot unions have agreed to drop several restrictive agreements, including on the fleet development of Transavia France, the group’s low-cost subsidiary, and on the metrics surrounding Air France’s annual production versus KLM on an ASK basis. The latter practice for years forced Air France to reduce the premium cabin size—with up to 13 first, business, or premium economy seats on a Boeing 777-200ER—and consequently record a decreased footprint on the high-margin premium segment. “For me, it is all about trust, and trust has to be earned from all stakeholders,” said Smith.
More In Aircraft
