Air France-KLM shares plunge as CEO to quit amid labour dispute

Tests show no hidden Tutankhamun chambers ministry

Tests show no hidden Tutankhamun chambers ministry

France's finance minister, Bruno Le Maire, told CNN affiliate BFMTV on Sunday that the labor dispute "threatens the survival of Air France".

Air France shares continued on their downward spiral today following the shock resignation of CEO Jean-Marc Janaillac over the weekend.

Monday's walk-out is the 14th day of action, as staff press for a 5.1% salary increase this year. But over at Air France, that well-oiled worker conflict played out in a decidedly more retro fashion.

On Monday, the price of the shares of Air France dived as the CEO of the company did quit and the French Government warned the country's flagship carrier might collapse.

Air France warned that industrial action would continue to affect its services today and tomorrow.

"Air France will disappear if it does not make the necessary efforts to be competitive", he warned.

After negotiations reached deadlock, Janaillac called a vote last Friday, the results of which went against him.

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Due to the new strike on Monday over wage demands the cancellation of about 15 percent of Air France flights worldwide was prompted.

Air France-KLM shares fell as much as 14.3 per cent to an intraday low of 6.93 euros ($8.30) in early trading, around at their lowest level since April 2017. While nearly all long-haul flights are predicted to operate, one in five medium-haul services from Charles de Gaulle airport in Paris won't, with short-haul trips from Orly also affected.

The overall cost of eleven days of strikes is estimated at some 300 million euros (almost $359 million), with one day of protests costing the company slightly more than 25 million euros.

Air France merged with Dutch carrier KLM in 2004.

The government of French president Emmanuel Macron is involved in its own ongoing battle with broad swaths of society which are resisting economic reforms. Mr Janaillac had put his job on the line as workers voted on a pay offer by management, a bet he lost as staff rejected the proposal late on Friday.

Janaillac will formally resign at a Board of Directors' meeting on May 9, the company said, adding that "it will be their responsibility to take the appropriate measures to ensure the continuity of the group and Air France during the transition period".

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