Dutch State raises stake from 5.9% to near 13%
#16
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https://europeantransit.wordpress.com/2019/02/27/aviation-netherlands-takes-stake-in-air-france-klm/
Makes me feel that there will be less of a claim to AF/KLM being a French run company... Air France / KLM will now have equal French & Duch representation, and the Dutch wing making much more than AF. I wouldn't be suprised if we hear shouts of wanting to move more of AF/KLM to the Netherlands... Still unlikely to happen in practice though.
Makes me feel that there will be less of a claim to AF/KLM being a French run company... Air France / KLM will now have equal French & Duch representation, and the Dutch wing making much more than AF. I wouldn't be suprised if we hear shouts of wanting to move more of AF/KLM to the Netherlands... Still unlikely to happen in practice though.
Three directors are appointed by the French State. I think that the three of the four employee representative are French Several independent directors are former French civil servants
Within the constraints set by the bylaws, directors are appointed by the general assembly,, But the French State has double votes. Hence, the Dutch State influence will first be rather indirect unless they can manage a coalition of shareholders
The good thing is that the French State-owned culture that is still pervasive at AFKL might take a serious hit And I am not sure that Ben Smith is so unhappy about it
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#18
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There was a LOT of discussion in the Dutch media regarding whether Pieter Elbers would be kept in his role in KLM. He is popular within KLM and is seen by the Dutch to be standing up for KLM's interests, which are increasingly seen as being under threat within the AFKL group. Ben Smith (and others) wanted to move him out as he had proved far too successful in defending KLM's interests.
Bloomberg: Air France-KLM's Dutch arm goes to battle over unit CEO Elbers
Bloomberg: Tensions rise at Air France-KLM over fate of Dutch unit's CEO
Business Insider NL - Pieter Elbers vs Ben Smith (in Dutch)
As such, I can see that the Dutch government chose to make this investment to counter any future tinkering that is seen as favouring AF to KLM's detriment, something that the Dutch already perceive as being a threat under Ben Smith's stewardship.
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Seems that Elbers, and the Dutch in general, are very concerned about the future of KL - and not the future success of AFKL (of wich they are a part).
Reminds of copany politics in the multinational I work for where many people aggressively defend the interests of their own department instead of working for the enterprise goals.. Sad.
That said, now they have a big (ish) stake in AFKL, maybe they will work to that. And maybe as things are slowly sorted in AF, there will be more focus and oversight on KL
Reminds of copany politics in the multinational I work for where many people aggressively defend the interests of their own department instead of working for the enterprise goals.. Sad.
That said, now they have a big (ish) stake in AFKL, maybe they will work to that. And maybe as things are slowly sorted in AF, there will be more focus and oversight on KL
#20
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The Dutch view is that AFKL is broken, but that KL is the part that is working. And you don't fix something by tinkering with the bit that's working.
#22
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In the end the French could have realized that one day it would be enough. The dutch state has kept it distance but requested when needed. Many times ignored. This is what they do. But I also think it has to do with the Delta and China S. stake in the company.
#23
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Being neither French nor Dutch I have no skin in the game, but am finding this public tussle very interesting.
Qantas used to be a bit of an industrial relations challenge until the current CEO Alan Joyce grounded the fleet during a dispute in 2011. It seemed a high risk strategy but since then the airline has gone from strength to strength.
In this situation, I can absolutely understand the Dutch position if KLM is providing a higher ROI but the AF staff get the payrise. Does anyone know the comparable salaries on both sides (i.e. were the KLM staff previously paid more than the AF staff for the same job)?
Also of note is the economic importance of each airline to their respective economies and the impact of shifting AFKLM Group focus from AMS to CDG.
Qantas used to be a bit of an industrial relations challenge until the current CEO Alan Joyce grounded the fleet during a dispute in 2011. It seemed a high risk strategy but since then the airline has gone from strength to strength.
In this situation, I can absolutely understand the Dutch position if KLM is providing a higher ROI but the AF staff get the payrise. Does anyone know the comparable salaries on both sides (i.e. were the KLM staff previously paid more than the AF staff for the same job)?
Also of note is the economic importance of each airline to their respective economies and the impact of shifting AFKLM Group focus from AMS to CDG.
#24
Join Date: May 2018
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Being neither French nor Dutch I have no skin in the game, but am finding this public tussle very interesting.
Qantas used to be a bit of an industrial relations challenge until the current CEO Alan Joyce grounded the fleet during a dispute in 2011. It seemed a high risk strategy but since then the airline has gone from strength to strength.
In this situation, I can absolutely understand the Dutch position if KLM is providing a higher ROI but the AF staff get the payrise. Does anyone know the comparable salaries on both sides (i.e. were the KLM staff previously paid more than the AF staff for the same job)?
Also of note is the economic importance of each airline to their respective economies and the impact of shifting AFKLM Group focus from AMS to CDG.
Qantas used to be a bit of an industrial relations challenge until the current CEO Alan Joyce grounded the fleet during a dispute in 2011. It seemed a high risk strategy but since then the airline has gone from strength to strength.
In this situation, I can absolutely understand the Dutch position if KLM is providing a higher ROI but the AF staff get the payrise. Does anyone know the comparable salaries on both sides (i.e. were the KLM staff previously paid more than the AF staff for the same job)?
Also of note is the economic importance of each airline to their respective economies and the impact of shifting AFKLM Group focus from AMS to CDG.
There way too much at stake for the Dutch economy when AFKL is pulling too many assets to CDG. That is too risky in these circumstances.
Ben Smith was apparently not able to give enough guarantees.
The French should stop whining.
#25
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If anything, it could be that it is because of Ben Smith that this move was taken.
There was a LOT of discussion in the Dutch media regarding whether Pieter Elbers would be kept in his role in KLM. He is popular within KLM and is seen by the Dutch to be standing up for KLM's interests, which are increasingly seen as being under threat within the AFKL group. Ben Smith (and others) wanted to move him out as he had proved far too successful in defending KLM's interests.
There was a LOT of discussion in the Dutch media regarding whether Pieter Elbers would be kept in his role in KLM. He is popular within KLM and is seen by the Dutch to be standing up for KLM's interests, which are increasingly seen as being under threat within the AFKL group. Ben Smith (and others) wanted to move him out as he had proved far too successful in defending KLM's interests.
That said, it could in some sense be turned to his advantage, not so much in terms of culture as such, but in terms of being in a better position to resist pressure from the French govt by arguing that this might create problem with the Dutch govt. In other words, a rebalancing of French and Dutch interests on the board of AFKL may not be such a bad thing and could conceivably give Ben Smith more leeway just as much as it might tie his hands, depending on how the Dutch govt plays its cards.
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Meanwhile the French seem to be threatening to block the second term for Elbers. And they probably can, because their vote counts twice due to long term share ownership.
https://www.lesechos.fr/industrie-se...is-2248248.php
But er...isn’t this threat initiated by the same Lemaire who was quoted by carnarvon saying:
https://www.lesechos.fr/industrie-se...is-2248248.php
But er...isn’t this threat initiated by the same Lemaire who was quoted by carnarvon saying:
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#29
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#30
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It all comes down to bad management from AF.
They bought KL in 2004 while KL was going through rough times and kept KL independent within the group.
It must be embarrassing for the AF management that KL is doing so well now.
Yes Air France pays more to Aeroports de Paris than KL pays to Schiphol but they should have done even better than KL.
This whole case is due to longtime bad management from AFKL group and Air France itself.