Max Kingsley-Jones/LONDONJulian Moxon/PARIS
THE GRAND PLAN of Air France Group chairman Christian Blanc to create a single European operation from the merger of Air Inter and Air France's regional operations, has been blocked by the unions' failure to agree to productivity improvements. Instead, Blanc says that Air Inter will be merged into Air France in 1997 as part of a new short- to medium-haul division.
The creation of Air France Europe was to have been completed in 1997, but pilots' unions representing the employees of the new division refused to accept the corresponding cuts in salaries and increases in productivity, which Blanc had considered essential.
On 4 July, Blanc presented this alternative merger plan to Air France and ex-Air Inter unions separately. This plan has been publicly supported, by French prime minister Alain Juppe. Air Inter pilots immediately called a strike, with virtually no notice, and a "summer of discontent" is anticipated as the merger plan is finalised. Blanc says that the only other options -to sell the airline or turn it into a low-cost carrier - are"unacceptable".
Blanc says that the creation of a single airline will result in the alignment of Air Inter salaries and working conditions with those of Air France, route closures and 950 redundancies.
The new merged airline will be set up in the second quarter of 1997 and will feature two distinct divisions, one operating short-haul services and the other long haul.
Blanc says that the merger will allow Air France to become profitable again and provide the framework for privatisation in the next two years.
Source: Flight International
