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Quelle Surprise: French Unions Boo Air France’s Choice of Non-French Boss

Aug. 16, 2018
3 min read
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Quelle Surprise: French Unions Boo Air France’s Choice of Non-French Boss
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As of Thursday, the flag carrier of France has a new, non-French CEO – a situation French trade unions find "inconceivable."

The Air France board of directors appointed Canadian Benjamin Smith, the current COO of Air Canada, as the beleaguered airline's latest CEO Thursday with the full support of the French State, which owns a 14.3% stake. Smith's mission, now that he's chosen to accept it, will be to revitalize Air France's executive structure and leadership out of its current slump – no easy feat for the inaugural foreign head in Air France's 85-year history.

The carrier's fate has gone into a tailspin in recent months following a series of recent employee strikes beginning in early February, which strongly influenced previous CEO Jean-Marc Janaillac's resignation in May. Employee unions were unsatisfied with Janaillac's negotiation proposal of a 7% wage increase over four years, beginning with a 2% increase in 2018. The continued strikes cost Air France around $359 million in lost revenue, led shares to drop by one-third of their value since January, and left millions of travelers stranded and frustrated with the carrier's operations.

Smith, who has been credited with helping Air Canada expand its international reach to more than 200 destinations, also has previous negotiation experience with pilot and flight attendant unions, which led to long-term labor deals. But the writing may already be on the wall for Smith even before the official transfer of duties takes place, as French unions have been vociferous in their public dissent over the choice of leadership.

"Other countries and governments show fierce protectionism when it comes to their airlines. How ... could we allow Air France to fall into foreign hands?" nine out of ten unions said in a joint statement released Thursday. The president of French pilot union SNPL, Philippe Evain, disparaged Smith's "limited knowledge."

"We don't understand why they couldn't find a competent French person," Evain said in a public interview. "We know that there were completely competent people who were sidelined from the selection process."

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Current plans have Smith commencing his new role by September 30 at the latest; in the meantime, airline leadership will still fall to Anne-Marie Couderc, non-executive Chairman of the Air France-KLM and Air France Boards, in conjunction with the three-member interim management committee established in May after Janaillac left office. The board will announce restructuring plans as soon as they are finalized.

Featured image by George Pimentel

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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

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  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.