Air France hit by new strike, sinking shares, quitting CEO

Air India shares plunged when French markets opened Monday. Air France-KLM CEO Jean-Marc Janaillac announced his resignation Friday night after workers rejected the company’s latest wage proposal

business Updated: May 07, 2018 17:17 IST

An Air France Airbus A319-111 airplane prepares to land at the Charles de Gaulle Airport in Roissy, near Paris, France.(REUTERS File Photo)

Air France is grappling with a new strike, a sinking share price and a warning from the French government that the airline’s survival is at stake.

Monday’s strike prompted the cancellation of about 15% of Air France flights worldwide. The number of striking staffers appears to be slightly declining as the airline enters its 14th day of walkouts in recent months.

Shares plunged when French markets opened Monday. Air France-KLM CEO Jean-Marc Janaillac announced his resignation Friday night after workers rejected the company’s latest wage proposal.

The strikes have cost Air France more than 300 million euros. French finance minister Bruno Le Maire on Sunday said the government would not rescue the airline but warned that “the survival of Air France is at stake.”