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Air Canada VP Ben Smith hired for the Air France - KLM CEO position

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Air Canada VP Ben Smith hired for the Air France - KLM CEO position

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Old Aug 20, 2018, 11:29 am
  #166  
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Perhaps the most detailed and motivated analysis of the challenges to be expected (in French):

https://www.latribune.fr/entreprises...ue-787959.html
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Old Aug 20, 2018, 12:27 pm
  #167  
 
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I find it funny that the unions are threatening industrial action to protest his appointment - should they not wait for him to actually do something that warrants industrial action ?
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Old Aug 20, 2018, 1:45 pm
  #168  
 
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Originally Posted by vernonc
I find it funny that the unions are threatening industrial action to protest his appointment - should they not wait for him to actually do something that warrants industrial action ?
Yes, that would make sense to us Canadians, but the French do it differently. They first go on strike to establish a "rapport de force", and then negociate, or not! This is just the way it is! It will be very interesting to see how this unfolds. This nomination is very much in line with the current French government's philosophy.
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Old Aug 20, 2018, 1:49 pm
  #169  
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Originally Posted by vernonc
I find it funny that the unions are threatening industrial action to protest his appointment - should they not wait for him to actually do something that warrants industrial action ?
That's indeed bizarre big time (and I'm being diplomatic).

Those unions expect having a say (or a veto) on executive’s appointments / management décisions, just wow!
I would never start a business in that kind of environment. Not with my personal money anyways.


Why don’t they gather money from their members and just purchase AF instead? At least that would save everyone from those useless industrial actions. (Not so sure about how they would tackle costs/make a profit thought… )
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Old Aug 20, 2018, 2:14 pm
  #170  
 
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Originally Posted by run&fly
Yes, that would make sense to us Canadians, but the French do it differently. They first go on strike to establish a "rapport de force", and then negociate, or not! This is just the way it is! It will be very interesting to see how this unfolds. This nomination is very much in line with the current French government's philosophy.
Unfortunately for them summer is 2/3 over in France. I have found an overwhelming propensity in Europe to go on strike during the summer months. Specially in France and Spain. If not for AF, its the ATC, or the farmers who block routes to the airports, or the truckers or the taxis or.......
In this case, they seem to not like the offered contract, and the appt of Ben seems to be the icing on the cake.
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Old Aug 20, 2018, 2:51 pm
  #171  
 
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Originally Posted by vernonc
I find it funny that the unions are threatening industrial action to protest his appointment - should they not wait for him to actually do something that warrants industrial action ?
I suspect the idea is the unions will want to flex their muscle to show the incoming CEO who's really in charge. It keeps him off balance and in crisis mode, rather than having a chance to settle in and implement his agenda in the way he would like. It's very much about shifting the balance of power to the unions and keeping events on their timetable, not Ben's.

The risk is he'll pull a Margaret Thatcher, and just shut down AF and shift the routes into an expanded KLM network.
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Old Aug 20, 2018, 2:55 pm
  #172  
 
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Originally Posted by Jagboi
I suspect the idea is the unions will want to flex their muscle to show the incoming CEO who's really in charge. It keeps him off balance and in crisis mode, rather than having a chance to settle in and implement his agenda in the way he would like. It's very much about shifting the balance of power to the unions and keeping events on their timetable, not Ben's.

The risk is he'll pull a Margaret Thatcher, and just shut down AF and shift the routes into an expanded KLM network.
Yup, will be a interesting battle. AF unions are going down the path of AZ.
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Old Aug 20, 2018, 3:25 pm
  #173  
 
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Originally Posted by Jagboi
The risk is he'll pull a Margaret Thatcher, and just shut down AF and shift the routes into an expanded KLM network.
Is that an actual possibility? Extreme for sure, but definitely one way to make a union problem go away.
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Old Aug 20, 2018, 3:49 pm
  #174  
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Originally Posted by ffsim


Is that an actual possibility? Extreme for sure, but definitely one way to make a union problem go away.
He can only do that to some relatively minor extent. This is actually one of the potential sticky points already mentioned by the unions.

BTW here is a funny picture from a Dutch article:

https://screenshots.firefox.com/lETb...CWdq/www.ad.nl

From
https://www.ad.nl/economie/vier-tips...even~aad3f3ba/

Four tips for Ben Smith for him to survive mission impossible.

1. Take a class on French integration.

Makes the point that in France one does not negotiate: the boss decides. Hence so many strikes...

2. Go join a French protest.

3. Go visit French president Macron ASAP.

4. Go buy strong shirts. Google "Xavier Broseta’ en ‘chemise."
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Old Aug 20, 2018, 3:58 pm
  #175  
 
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What surprises me about this whole thing is these European SkyTeam airlines (i.e. KL/AZ/AF) complain that the British (BA), Germans (LH Group) and Irish (EasyJet/RyanAir) are breathing down their neck with regards to product offering, pricing, route network, etc. but they don't take a moment to reflect on their last 20 years in their industry. While the other carriers have grown, the stubborn unions at these airlines have been digging their heels in harder than ever even when their employer's financial health is on the line. There's a reason why you never see strikes at LH, BA, FR and U2!

Safe Travels,

James
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Old Aug 20, 2018, 4:01 pm
  #176  
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Originally Posted by j2simpso
There's a reason why you never see strikes at LH, BA, FR and U2!
You never see strikes at LH? Really? As to Ryanair, you should follow recent news...
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Old Aug 20, 2018, 4:08 pm
  #177  
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Originally Posted by Stranger
You never see strikes at LH? Really? As to Ryanair, you should follow recent news...
I've seen strikes at BA also.
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Old Aug 20, 2018, 4:16 pm
  #178  
 
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Originally Posted by tcook052
I've seen strikes at BA also.
Some fairly bitter ones not that long ago.
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Old Aug 20, 2018, 9:54 pm
  #179  
 
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Originally Posted by ffsim


Is that an actual possibility? Extreme for sure, but definitely one way to make a union problem go away.
Stranger things have happened. He does have some other tools at his disposal. Transavia France is a low cost subsidiary very similar to Rouge. Its sister company in Amsterdam is Transavia. I have only been on it one, several years ago flying Vancouver to Amsterdam on KLM and connecting to Transavia from their to Faro.

They also have some airline called Joon. As far as I can tell is Transavia for the cool kids.

He may be able to take what Air Canada did with Tango, Zip and Rouge and do something similar. European airlines also don't appear to have the same types of limits on their Regional airlines that they do in North America.
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Old Aug 21, 2018, 10:19 am
  #180  
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Originally Posted by Fiordland
Transavia France is a low cost subsidiary very similar to Rouge. Its sister company in Amsterdam is Transavia.
Transavia is headquartered in Amsterdam and it's subsidiary is Transavia France.
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