The Air France-KLM board has recommended the renewal of KLM
CEO Pieter Elbers' contract as part of the leadership structure Air France-KLM
CEO Benjamin Smith has proposed.
The board approved the proposal Tuesday. It
creates a "group CEO committee" chaired by Smith and consisting of
Elbers, Air France CEO Anne Rigail and Air France-KLM CFO Frederic Gagey. Smith
aims to increase collaboration across the airline group and simplify
operations, including its strategies with fleet, network and alliances.
Reports last week indicated the board was considering
removing Elbers due to perceived lack of support of those centralization efforts,
which KLM managers had warned could result in industrial action.
Air France, meanwhile, now will see relief from such
industrial action, as its pilots have voted to approve a pay deal, according to
Bloomberg. Labor disputes, particularly from pilots, caused more than two weeks
of strikes at Air France last year, and Smith predecessor Jean-Marc Janaillac's
failure to reach an agreement resulted in his departure.
Source: Business Travel News