Monday, June 13, 2016

Air France Pilots Observe Strike Demanding Pay Hike Amid Euro 2016




Air France, the French national carrier has urged passengers to start traveling after checking respective flight status. The pilots have initiated a four day strike demanding pay hike from June 11 which may cause cancellation of some flights amid rush hours of Euro 2016.

Schedule for more than 80% of flights has been maintained despite around a quarter of Air France pilots have been observing the strike. Some Paris-Marseille bound flights have been cancelled on June 11 causing sufferings to the fans of England-Russia match.

Among the protesters, Spaf (Syndicat des Pilotes d'Air France), a pilots’ union has been protesting a planned pay cuts while changing the working conditions. Other unions have been striking demanding the government to scrap its proposed new labor laws. The planned changes in existing law will make it easier to hire and fire people, reports BBC.

Though the SNPL president has forecast for 70% participation from the pilots in the strike, but finally 25% pilots have been witnessed to demonstrate in support of the movement, informs Frederic Gagey, chief executive of Air France. The French national carrier has operated 83% of flights since Saturday- 93% of the long-haul flights from Paris, 91% of its domestic flights and 73% of its medium-haul flights to and from Charles de Gaulle airport, Paris, reports Reuters quoting an Air France statement as the source.

Air France has done a lot to minimize the impact of the strike, informs Catherine Jude, head of the national carrier’s operations control while addressing in a press briefing. He also urges remaining mobilized to end this strike through the means of social dialogue.  

The ongoing work abstention by the Paris based airline pilots appears to be the second one within two years. The strike is believed to cost tens of millions of Euros during the four days, warns Alexandre de Juniac, Air France-KLM Chief executive. Following the strike, share prices for the national carrier have fall by 2.9% to €6.67 and net worth of the company now stands at €2 billion ($2.26 billion), according to a report published in Bloomberg.

The ongoing strike appears to be a part of long running dispute limiting Air France’s ability to keep pace with low cost rivals. The airline has won a court battle over extra work-hours requirement causing tensions among the pilots and other staffers. The court order has been implemented since June 1. 
  
According to the court verdict, the Air France pilots need to work for more hours with no additional pay. Furthermore, the employees have been demanding for including 26 more long-haul planes to reflect the airline’s readiness for capacity growth. If Air France decides to accept the pilots’ pay roll demand, the carriers’ annual expenditure will be increased by 11% to around €1 billion ($1.13 billion), informs Gilles Gateau, head of personnel for the national carrier.  

KLM, the national carrier’s sister brand has publicly criticized the strike as a destructive move. The strike takes place just after the inauguration of Euro 2016 on June 10. Final of the all European tournament is scheduled to take place in Paris on July 10. Other airlines, including the budget carriers, Ryanair Holdings Plc and EasyJet Plc, have arranged additional flights for carrying the football fans towards the match venues during the tournament.

According to Air France CEO, the strike will cost €5 million a day. Around 7 million football fans are expected to visit the 10 cities hosting the Euro matches. President Francois Hollande has cautioned the unions over possible disruption in the football championship tournament.  

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