With the Air France workers deciding to go back to work, what has been the damage to Air France?
Air France A319 at Paris Orly Airport – Image, GhettoIFE.
Firstly, the strike isn’t really over. The unions have called a stop to the strike to allow negotiations to allow a calmer climate. None of the demands that the pilots union – SNPL – have been met.
Secondly, Air Frances operation’s have taken one hell of a hit, with the airline estimating a loss of €200 million since the strike begun, along with countless cancellations, customer rebookings and reroutings due to the 50% and more cancellations.
The union and Air France management are at loggerheads over the development of the Air France-KLM subsidiary Transavia and how it will grow in response to the low cost carriers, whilst Air France attempts to cut its costs.
It’s the variability of the pay between Transavia and Air France pilots will get that has been one of the contentious points of the negotiations, as well as the Transavia taking over some Air France routes.
However, to do this, Transavia France will need to increase their fleet. That limit was agreed with the unions at 14 aircraft. Without the agreement of the unions, Air France cannot grow the Transavia fleet.
So, has the threat of further strikes vanished? I don’t think so sadly.
The unions are holding pretty steadfast in terms of equal pay between the two airlines – which would hit the savings of the proposed expansion of Transavia, whilst Air France tries to work a solution. If Air France caves into the union demands, this could ward off investors who could pump money into the Air France-KLM Group.
According to France24, French Prime Minister Manuel Valls said:
“It is now up to all parties in the wonderful company that is Air France to regain the confidence of all and quickly resume plans for its future development, notably regarding its Transavia subsidiary, which is undeniably an asset in the booming market for low-cost carriers.”
Can it though with this cloud over its head? That’s a question I suspect we’ll see in the boardrooms, the streets and the runways where Air France operates in the coming weeks…
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