PARIS: Air France-KLM on Friday said traffic had fallen 2.6 percent in April and blamed a wave of strikes over pay conditions at the French brand, that last week forced the chief-executive of the Franco-Dutch group to resign.
Air France needs to cut costs to keep up with leaner rivals in Europe, including its sister company KLM, but it has come up against strong resistance from unions representing its pilots, cabin crews and ground staff.
Air France employees’ reluctance to back reforms and the ensuing management fall-out inside the airline has left some aviation analysts asking how long the alliance may last.
KLM passenger numbers rose by 5.2 percent year-on-year in April, while Air France’s dropped 8.7 percent, reflecting the diverging fortunes of the two brands. Overall, the group carried 8.2 million passengers, down 2.5 percent from a year ago.
Jean-Marc Janaillac said last Friday that he was resigning as CEO after staff rejected a pay deal that he had put to a vote after talks with the unions reached a deadlock.
Air France-KLM’s board is due to meet next week to appoint an interim transition team to succeed Janaillac, who lasted less than two years in the job.
Air France-KLM suffers fall in April traffic numbers, blames French strikes
Air France-KLM suffers fall in April traffic numbers, blames French strikes
Closing Bell: Saudi main index closes in red; Nomu gains
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend on Tuesday, as it shed 34.44 points or 0.33 percent to close at 10,290.76.
The total trading turnover of the benchmark index stood at SR3.57 billion ($950 million), with 80 of the listed stocks advancing and 178 declining.
The Kingdom’s parallel market Nomu advanced by 0.43 percent or 100.66 points to close at 23,327.60.
The MSCI Tadawul Index, however, declined by 0.19 percent to 1,368.49.
The best-performing stock on the main market was Almasane Alkobra Mining Co., as its share price increased by 7.83 percent to SR95.
The share price of Electrical Industries Co. advanced by 6.17 percent to SR11.18.
Saudi Arabian Mining Co., known as Maaden, also saw its stock price climb by 5.74 percent to SR64.50.
Conversely, the share price of Shatirah House Restaurant Co. declined by 8.14 percent to SR8.13.
On the announcements front, Saudi Telecom Co. said that it plans to issue a dollar-denominated international sukuk under its $5 billion International Trust Certificate Issuance program.
According to a Tadawul statement, the issuance program was set up on Jan. 6, following a board approval obtained on Sept. 30.
Stc added that the issuance will be conducted through an offshore special purpose vehicle established outside Saudi Arabia, adding that the proceeds will be used for the company’s general corporate purposes.
The statement further said that the sukuk may be issued in one or more tranches or series by way of an offer to eligible investors in the Kingdom and internationally.
The telecom giant added that the amount and terms of the offer of the sukuk will be determined based on market conditions.
The share price of stc edged down by 1.08 percent to SR42.06.
