Airline faces substantial operating losses in 2011 and 2012
The new management team announced by Air France this week faces multiple challenges as the airline tries to revive its fortunes. Compared with rivals IAG and Lufthansa, Air France-KLM has been underperforming. CreditSuisse has predicted an operating loss of €192 million in 2011 and an operating loss of €418 million in 2012. It has slashed capacity, but the management changes come following mounting criticism that the reform has been too slow in coming.
Jean-Cyril Spinetta, Air France-KLM’s group board chairman, has been named chairman and CEO of the group, while Alexandre de Juniac, the former chief of staff of IMF leader Christine Lagarde when she was France’s finance minister, has been drafted in as the new CEO of Air France, subject to approval by the airline’s board.