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Air France-KLM: the Group's future be decided on Monday?

There will be an internal crisi if Elbers will be removed as CEO?

Next Monday, the board of directors of Air France-KLM will make a decision regarding the leadership of the Dutch carrier, above all the doubt on the future of the president and CEO of KLM Pieter Elders will be resolved. Depending on the choice that will be made will change the future of the Franco-Dutch Group because its confirmation would be a "half" defeat for Benjamin Smith and the French component, while its removal could cause friction difficult to resolve between the two parties. Elders has in fact the support of Dutch politics, workers and managers of the airline, so much so that the first risk is that of a general strike by KLM against the decision of the Canadian Smith. His choice would be, however, in line with his strategy of increasing the link between the two airlines by controlling them directly, so as to avoid overlaps or competition between Air France and KLM.

The problem is that for the Dutch it would be an unacceptable situation since financially they are much better than the French counterpart, so much so that in the first 9 months of 2018 the turnover of KLM has increased by 5% against 0.4% of Air France. To a greater extent, the operating margin that marks an economic gulf between the two carriers has increased, also because the French airline has had to face many strikes at the beginning of last year solved only in recent months with agreements signed between the trade unions and Benjamin Smith.

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