SCHIOPHOL: The chief executive of Air France-KLM admitted "tensions" over the future of the airline alliance as the Dutch carrier marked its 100th anniversary on Monday.
Frictions burst into the open earlier this year when the Dutch government unexpectedly raised its stake in the group to almost the same level as the French state.
The surprise move followed years of disagreements over the profitability of Air France and KLM, which merged in 2004 but continue to operate largely separately.
"Yes, there are some tensions," Air France-KLM's Canadian CEO Ben Smith told a press conference in a hangar at Amsterdam's Schiphol Airport.
"I think that when you have two airlines in a group that are so important for each country, and mean so much in each country and in the history of each country... it's only natural to see that each government wants to secure their interests for the future."
Smith added that the French and Dutch governments "are looking to ensure both companies a strong future."
In February, the Dutch government caused a political storm when it unexpectedly lifted its stake in the airline to 14 percent, just shy of the 14.3 percent held by France.
The move was prompted by doubts over the alliance's growth strategy, and worries that Dutch interests were being neglected while Air France pilots and crews were resisting the hard choices needed to streamline operations.
A series of strikes at Air France earlier this year forced flight cancellations over several months.
KLM chief Pieter Elbers said it was a good step that Paris and The Hague were in talks about the issue.
"What is important is that there are discussions between the Dutch government as a new shareholder and the French government as an existing long-term shareholder," Elbers said when asked about the tensions.
"What's relevant for us is that they take the time to come to a good understanding in order to move forward as a group and for the individual airlines," added Elbers, speaking against a backdrop of scenes from the Dutch airline's century-long history.
Airline boss admits 'tensions' as KLM marks 100 years
Airline boss admits 'tensions' as KLM marks 100 years
- The Dutch government caused a political storm when it unexpectedly lifted its stake in the airline to 14 percent
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
