Air France-KLM Names Jean-Marc Janaillac as New CEO
May 01 2016 - 10:10PM
Dow Jones News
PARIS—Air France-KLM's board officially picked Jean-Marc
Janaillac, head of bus and train operator Transdev, to replace
Chief Executive Alexandre de Juniac, who is due to leave by August
after struggling to restructure the ailing airline group.
The board approved a recommendation made by the Nomination and
Governance Committee, the Franco-Dutch company said in a statement.
The board stressed Mr. Janaillac's experience in the airline
business and his handling of dialogue with workers to justify the
decision.
Mr. de Juniac is due to step down in late July to become chief
executive of the International Air Transport Association, the trade
association of the world's airlines.
The move comes as the company's management is in the middle of a
delicate negotiation with unions over cost-cutting as it slowly
recovers from years of losses following an improving environment
for the air transportation business.
At Transdev, Mr. Janaillac, 63, has led difficult negotiation
with unions, notably with the Marseille-based shipping company
SNCM. He held a senior position at Air France in the late 1980s and
was a top executive at airline AOM in the late 1990s. He also has
worked in the past in the Netherlands.
Mr. Janaillac also has very good political connections as he
studied at the prestigious Ecole Nationale d'Administration in
France along with French President Franç ois Hollande, Finance
Minister Michel Sapin and Environment Minister Segolene Royal.
Air France's restructuring program—launched by Mr. de Juniac in
September 2014—faces uncertainty after clashes with unions that
climaxed in October 2015 when a mob accosted two of the company's
top officials and tore their shirts in front of TV cameras.
The plan is aimed at making the airline group more cost
competitive to better battle budget airline competitors such as
Ryanair Holdings PLC and easyJet PLC in Europe, and long-haul
competition from Emirates Airline and other rapidly expanding
Middle East carriers.
Air France has threatened to slash 2,900 jobs and close
long-haul routes unless it can gain concessions from pilots and
other employees. Talks between the airline and union about job cuts
are continuing.
Since taking the top post at the French arm of Air France-KLM in
2011, Mr. de Juniac implemented cost reduction plans and aimed to
refocus the company by developing its low-cost unit, Transavia. He
took over as CEO of the entire group in 2013.
Frederic Gagey, the CEO of the group's Air France arm, will
remain at his job, the official said. Mr. Gagey was initially
mentioned as a possible replacement for Mr. de Juniac.
Write to Inti Landauro at inti.landauro@wsj.com
(END) Dow Jones Newswires
May 01, 2016 21:55 ET (01:55 GMT)
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