orbitmic

Notwithstanding my judgement on his performance (as above) I certainly agree. Sad it is, especially as it is far more humiliating to have him pushed aside in such a way right now as compared to if he had been replaced a few months ago when the board decided to renew his mandate. To me, this seems at the very least like a shameful waste of a few months and a not very considerate way to deal with someone who has clearly (if not very successfully in recent years) dedicated much of his life to his company.

Irelandflyer

[AFP]

The head of Air France-KLM Pierre-Henri Gourgeon resigned Monday at an extraordinary board of directors meeting, a company statement said.

He will be replaced by as CEO by Jean-Cyril Spinetta who was already serving as the chairman of the board of directors and played a key role in setting up the Air-France KLM group.

A source familiar with decision told AFP Sunday there was friction between Gourgeon and Spinetta, but Air France declined to comment on the claim.

"In the current economic context, top priority must be given to the recovery and improvement of the performance of Air France and of KLM," the company said Tuesday, explaining the decision.

The statement also said that because of the economic climate, "the setting-up of a full-dedicated Air France-KLM holding, which was to be implemented at the beginning of 2012, has been put off to 2013."

Gourgeon, 65, was appointed CEO on 1 January 2009.

In July, company shareholders voted to reappoint Gourgeon for another four-year term, but later that month the group reported a first quarter net loss of 197 million euros ($283 million) and warned that outlook was uncertain for the rest of the year.

af fp

It is interesting to see that the two old AF and KL bosses come back in power. In a way I find it sad that noone younger can head the company, but I suppose these guys are intelligent enough to know that change is needed and how to make it so everyone accepts it. We knew AFKL was in trouble but it was not clear to me how bad that was.

As for our experience as frequent flyers, we will see, I certainly find a lot of improvements can be brought in. We will probably start listing these soon.

At this point I congratulate AF's board for making a necessary move and send them positive karma which I hope will help them and the new CEOs to make AFKL a great place for its employees, shareholders AND clients.

JC25

It will not change anything for us. Gourgeon or not Gourgeon, I don't think we can expect something better : safety, comfort, better FFT program. That's all guys.

brunos

PHG had reached 65 in April, so not an "early" departure for CEO. Unless I am mistaken, What the board did a few months ago was to renew his mandate as Director of the board not appoint him for another 4 years as CEO. Everyone expected that a corporate governance change would take place in the following weeks. So it is not an "humiliation", just the solution that had been under discussion for numerous months.
Given the golden retirement package that he will get, it is hard for me to feel sad for him after all the value destruction at AFKL.

mike turnbull

Still, at least he'll probably be a Lifetime Platinum Member.

brunos

No need, I am confident that he can travel P class forever
Another reason for AF to retain P class.

scotcat

I agree about AFKL getting, say, not better. But ´healthy´? If memory serves, AF was propped up by state subsidies almost every year before privatisation (with still a substantial government input). And Spinetta? Again, I don´t know much, and remember less, but Italian connection comes to mind (did he not press hard for the AZ link?). And the new guy, supposedly really good, but, as for so many years in France, AF and CDG, comes from politics (or rather a mix). Now this might be good, but I agree with others that we should not dream too much about a positive impact on our FFP balance sheet, or happiness on board.

johan rebel

You've gotta love the Dutch for their blunt directness.

I came across this gem on luchtvaartnieuws.nl:

KL CEO Peter Hartman, in response to a question about the demise of Gourgeon:

"Er was spanning onderling in de groep, tussen de Fransen. Ik heb me daar buiten gehouden, ze wilden daarover Frans met elkaar praten. Ik heb het lullen aan hen overgelaten"

There were tensions in the group amongst the French. I stayed out of it, they wanted to speak French. I left the bullshìtting to them.

Johan

yno

He probably did the most sensible thing ;-)

JOUY31

Demise of Spinetta? or is it PHG?

johan rebel

The latter, of course. My mistake, now corrected.

Johan

brunos

PHG tenure has been disastrous for AF. After a loss of over 700 million in calendar 2010 (once adjusted for the "paper" capital gain on Amadeus sale), the 2011 loss is 800 million. And frankly, the 2010-2011 period was a period of rapid growth in traffic as measured by RPK (Revenue Passenger Kilometers) or other indicators:
http://www.iata.org/pressroom/facts_...-02-29-01.aspx
if the European crisis hits the airline industry, the picture will be less rosy in 2012.
There might have been a bit of JCS influence in the past few years, but PHG decisions have been disastrous. How can a CEO be awarded such a golden parachute and claim even more "exceptional benefits" while his company lost billions? He should be ashamed of himself, not upset with the company.

Canada freak

Dutch practice I assume
(google for "vestia" and "erik staal", it's in the Dutch news daily)

johan rebel

You get people so arrogant and self-conceited that their sense of entitlement completely obliterates what little sense of reality they may possibly still possess.

Johan