Airline KLM must cede excess cash to the holding company Air France-KLM. That made financial director Pierre-François Riolacci Air France-KLM said Friday at a press conference in Amstelveen, with a heavy occupation of seven directors of French and Dutch side
Although the financial director denied that money from one business ‘pumped’ to another is, there certainly needs money Riolacci direction. He wants to use the money to attract financing. When asked Riolacci said that it is € 1 billion in cash KLM annually. In the next six months, the administration must decide on this part of cash management.
Battle
Sources within KLM state that there is a conflict between the Dutch management and the supervisory board (supervisory board) and on the holding board formed by Alexandre de Juniac and the aforementioned Riolacci. Objections from the Dutch Works Council and the Supervisory Board are set aside on the surrender of the greenhouse, because Air France-KLM is the ultimate owner of the Dutch airline. The financial director of KLM Erik Swelheim, caught between two fires, because Riolacci is his boss, said the sources. The Juniac and Riolacci are under pressure as a result of three profit warnings in the previous year. They should in the coming months with positive news coming towards shareholders. The supervisory board will not comment on the issue.
Transavia
Riolacci said Friday he KLM and also the cash that Air France needs to get better access to capital markets. But sources within KLM state that he needs the money to buy new aircraft for Transavia France. Purchased by the holding company, instead of by Air France.
Riolacci yesterday stated that the proceeds of the stake in Amadeus booking system will be used for general purposes, for both investment and for debt repayment. How high net debt comes out at the end of the year, did the financial director Friday not elaborate. At the end of the third quarter this was just over € 5 billion. Air France-KLM is on 19 February with the annual figures, where it will be announced, as well as the height of the cuts in the airline group.
Merger
Air France and KLM announced a merger in September 2003. The two companies complete the merger off in May 2004. The Frenchman Jean-Cyril Spinetta, the CEO of the company.
Lose
2008-2009 Air dies France-KLM for the first loss. In the following years, let alone 2010-2011 still show a profit. The losses are mainly caused by Air France.
Coup After CEO Spinetta in 2009 was retired, he returned in October 2011 suddenly from the supervisory board back to turn the tide. Alexandre de Juniac follows him in 2013.
Reorganizations
In January 2012 a reorganization announced by the French parts. In November 2014, KLM announced measures. In February 2015 shows how the group should cut.
rout
October 2014 Eurlings because of his dazzling performance at KLM. He was succeeded in July 2013 as CEO Peter Hartman. Pieter Elbers takes the position Eurlings about.
Very strong pressure
CEO Alexandre de Juniac Friday stressed again the “very strong pressure on our sales and fierce competition from low-cost airlines and airlines from the Gulf regions. The market therefore looks forward to the interventions on the French side because KLM already two months ago announced the coming years to save € 700 million. This will happen through, among other labor costs, work more efficiently and shopping. From salaries should be € 200 million.
Of the amount of € 1.3 billion in cuts at Air France that buzzes around, The Juniac said Friday that it hangs in the air. ” This should be discussed in the coming weeks with the works council and trade unions. That it takes longer to Air France, according to the CEO is logical. ‘I get up in the morning not with a figure in my head. This is a serious matter and should be thoroughly investigated, “responded the Juniac on the allegation of pressure side that it all takes very long at Air France.
Unions
However, there will still be some time go by before Air France actually the stores cut, because there must be negotiated with the unions. And that negotiations will take place after the union elections in March, according to De Juniac Friday.
Air France is expected to intervene less hard than KLM. KLM wants the next years annual increase in productivity by 4%, which in practice means that there are fewer people with more needs to be done. CEO Frédéric Gagey Air France said Friday at the FD that productivity battle at Air France ‘lower’ will come out.
Pilots shareholder
The Juniac welcomes a possible seat of the Dutch pilots in the management of the airline. “It is common in France, we have two places on the board occupied by workers’ reacted The Juniac Friday at a meeting in Amstelveen on the requirement of pilots union VNV. “We look forward, as it is legally still a complex story,” said the chairman.
The pilots want in exchange for tougher also works shareholder of the airline. “If it makes money, I’m positive about it,” said De Juniac. The future will show whether the entire board of Air France-KLM life in the desire of the pilots, who also want a seat on the supervisory board of KLM. The cabin, united in the VNC, regulator wants to be at the Dutch KLM.
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