Air France KLM shares rise on hopes of union pay deal

Published 18/10/2018 in Uncategorized

Air France KLM shares rise on hopes of union pay deal

PARIS (Reuters) – Air France KLM (AIRF.PA) shares rose on Thursday, which traders attributed to a report on the website of business publication La Tribune that Air France would put forward a pay agreement proposal to unions later this week.

LaTribune.fr reported the pay deal could be proposed to unions on Friday. An Air France spokeswoman declined to comment on the matter.

Benjamin Smith took over as Air France KLM’s chief executive last month. Smith faces having to overcome union resistance to reduce the French unit’s swollen cost base while keeping increasingly frustrated Dutch staff on side.

The French state has a 14 percent stake in Air France KLM, while Delta Airlines (DAL.N) and China Eastern Airlines (600115.SS) each hold an 8.8 percent stake.

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