Air France shares in tailspin after CEO quits

Air France stock was down nearly 13 per cent at 7.08 euros.
Air France stock was down nearly 13 per cent at 7.08 euros.PHOTO: AFP

PARIS (AFP)- Air France shares went into a tailspin on the Paris stock exchange on Monday (May 7) after the resignation of the strike-hit company's CEO.

Air France-KLM boss Jean-Marc Janaillac announced his resignation on Friday after staff at the carrier's French operations rejected a pay deal aimed at ending months of walkouts.

In early bourse business Air France stock was down nearly 13 per cent at 7.08 euros.

Unionised staff are set to walk out for the 14th day on Monday as they press for a 5.1-per cent salary increase this year as the company recovers from years of losses and restructuring.

France's economy minister on Sunday warned that the survival of Air France was now in the balance.

"I call on everyone to be responsible: crew, ground staff, and pilots who are asking for unjustified pay hikes," Economy Minister Bruno Le Maire told the BFM news channel.

"Be responsible. The survival of Air France is in the balance," he added.