This Air France aircraft stand on the tarmac at the airport in Paris Charles de Gaulle .
The Executive Committee of Air France against the striking pilots heralded the withdrawal: You announced on Mittwochn that it would forgo the development of in-house low-cost airline Transavia abroad. Instead, they wanted to promote the expansion of Transavia on the French market.
Author:. Christian Schubert, born in 1964, economic correspondent in Paris
The announcement is a failure of corporate governance. The opening of foreign locations, such as in Portugal or in Germany, was seen as key to reducing costs, because Air France had thus escaped the rigid and expensive wage agreements of the Air France pilots.
The withdrawal of the foreign expansion of Transavia is also a bad omen for the competitors Lufthansa. There, pilots and the Executive Committee also negotiate on the opening of low-cost foreign locations. Without this, Lufthansa unable to come against competitors such as Easyjet, Ryanair and Vueling. Air France announced on Wednesday afternoon announced that the now abandoned calls with the trade unions should be resumed in order to end the conflict quickly. And she had also urged the government with a share of 16 percent of the capital or the largest shareholder of Air France.
One and a half week strike
After ten days of strike participation in the work stoppage on Wednesday was still high: More than half of all flights had to be canceled. It is now for the most serious labor dispute at Air France since 1998, Germany was it again severely affected: From Munich to Paris Frankfurt only flew on Wednesday only one of six Air France-machines, from Berlin-Tegel is only one of five and three of seven aircraft of the French airline. Air France go according to management on a daily 15 to 20 million euros lost. The goal of returning to profitability after years of losses in 2014 is, therefore, strongly questioned. The strike losses now exceed the expected profits by the subsidiary Transavia Europe in the coming years.
French government switches sides
The pilots of Air France defend especially their comparatively low working hours and higher salary. They are, on average, by 20 to 25 percent better paid than in the small subsidiary Transavia. The final content of a captain’s often reaches 230,000 euros a year. According to the industry association fnam the Air France pilots fly around 550 to 650 hours a year, while competitors such as Lufthansa and British Airways come to 700 to 750 hours. The French Government had placed first on the side of Air France in the dispute. No one understands the conflict, and he brings Air France in great danger, the Prime Minister Manuel Valls had stated in recent days. With increasing duration of the conflict, the socialist government demanded but a turning in the Air France management.
On Wednesday morning it was not the Executive Committee, the withdrawal of the foreign expansion of Transavia announced the first, but the Secretary of State in charge of transport issues Alain Viladies. A company spokesman denied the information first, because Air France had until then only a reprieve for three months offered. But later confirmed Prime Minister Valls his Secretary of State. That the Air France seat several hundreds of employees to the pilots’ strike demonstrated in Paris, because this defended the privileges of a selfish profession, the protesters, the corporate management helped then not much.
worry about economics Location France
The government also intervened in the strike because she cares about the image of the business location France. Prime Minister Valls seeks to reform, has because of the faltering socialist majority in the National Assembly but little room. The employers’ organization MEDEF put on the Wednesday before new proposals, but as a radical force in France: the abolition of the 35-hour week, the deletion of holidays as well as a reduction in the state minimum wage to be covered by the State wage subsidies. In return, a creation of 1 million jobs by 2020 would be possible, says the MEDEF. The government has already granted most of the reform proposals a rejection. On Wednesday evening, the latest unemployment figures donated some consolation: They went the first time in nine months slightly – by 0.3 percent to 3.41 million unemployed
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