Air France woes deepened on Monday, as it shares fell 14%. The airline is currently troubled; facing unwavering industrial dispute and coupled with the resignation of its chief executive Jean-Marc Janaillac. The airline’s staff have rejected a new pay deal proposed by the management citing its dwindling fortune. However, Air France staff are demanding a 5.1% pay rise.
French Minister of Finace Bruno Le Maire warned on Sunday Air France could “disappear”, owing to its current predicament.
“I call on everyone to be responsible: crew, ground staff, and pilots who are asking for unjustified pay hikes.
“The survival of Air France is in the balance,” he said, adding that the state would not serve as a backstop for the airline’s debts.
“Air France will disappear if it does not make the necessary efforts to be competitive,” he warned.
The French government owns 14.3% of the Air France-KLM parent group.
Despite the strike, the airline insisted that it would be able to maintain 99% of long-haul flights on Monday, 80% of medium-haul services and 87% of short-haul flights.