Air France-KLM has named its Chief Financial Officer Frederic Gagey as interim CEO to replace Jean-Marc Janaillac, who stepped down following a labor relations crisis, which had led to months of successive strikes.
The announcement came after Air France-KLM group’s Board of Directors annual shareholder meeting on Tuesday. Janaillac had announced that he would step down on May 4 and officially submitted his resignation on Tuesday.
“The members of the Air France-KLM Board of Directors firstly wish to express their deep regret over the successive strikes affecting Air France customers in recent weeks and disrupting their travel plans,” the board said in a statement.
Air France workers have held a series of strikes since February, with unions demanding a 5.1 percent pay increase.
“These strikes will also have a negative impact on the group’s financial results,” the board said.
Gagey will act as spokesperson of a three-member management committee with Air France CEO Franck Terner and KLM CEO Pieter Elbers to temporarily serve as deputy group CEOs.
The management committee will make all decisions collectively. Its role will be to supervise and monitor the Group’s operations and to coordinate strategic issues between the group and its airlines. The group also includes the airlines of Transavia, HOP! and Joon.
Air France-KLM also named board member and a former deputy French minister Anne-Marie Couderc as interim non-executive chairman.
Moreover, regarding Air France, Couderc will also be appointed as non-executive chairman of Air France’s Board of Directors and Franck Terner will remain as Air France’s managing director.
Regarding the continuing labor dispute in Air France, the board confirmed that the Air France’s CEO does not have a new mandate to take decisions that would jeopardize the group’s growth strategy.
“The board is aware of the difficulties currently being traversed by Air France and requested to be kept regularly informed of the company’s labor situation,” the group said.
Photo source: Air France-KLM