Air France-KLM has appointed Air Canada president and COO
Benjamin Smith as its new CEO, a role he will assume by Sept. 30, the board
announced on Thursday.
The airline group has been operating under interim
leadership since chairman and CEO Jean-Marc Janaillac resigned
this year amid failed contract negotiations with Air France staff.
The labor disputes, which have led to several days of strikes and canceled
service this year, have had a severe financial impact on the carrier, including
a
hit of 260 million euros to the group's bottom line in the most recent
quarter.
The choice of a non-French CEO already has raised ire from
the carrier's unions. Reuters reported a joint statement from the unions
calling it "inconceivable that the company Air France which has been
French since 1933, would fall into the hands of a foreign director." However,
Smith also brings experience in successful labor negotiations, having been the
lead negotiation for 10-year labor contracts, now in their third year, with
pilots and flight attendants at Air Canada, wrote Cowen and Co. analyst Helane Becker in a research note. Becker also called Smith, who has been with Air Canada
for more than two decades, "instrumental in the turnaround" of the
carrier.
"Smith is considered the 'visionary' behind Air
Canada's strategic and global network expansion, as well as overseeing the
launch of Air Canada Rouge, which has been quite successful and continues to
grow," according to Becker'.
Smith said he looks forward "to
earning the trust and respect of all teams, working together to win in this
highly competitive and fast-changing customer service industry. I am
approaching this new challenge with my passion for the aviation sector and with
my deep willingness to listen to all stakeholders so we can work together and
win."