Air France-KLM Drops as CEO Exit Puts Carrier at Mercy of Unions
- De Juniac's short tenure was punctuated by labor strife
- Analysts say departure will postpone vital restructuring
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Air France-KLM Group shares fell the most since 2014 as the surprise exit of Chief Executive Officer Alexandre de Juniac after just three years in the top job created a power vacuum that puts Europe’s biggest carrier at the mercy of unions implacably opposed to cost-cutting plans.
The stock slumped 8.6 percent as the announcement of De Juniac’s departure a year after he secured a new contract leaves Air France-KLM rudderless while it fights to remain a leading carrier amid an onslaught from low-cost rivals in Europe and Persian Gulf operators on long-haul routes.