PARIS: Air France-KLM, which was badly hit last year by strikes and management upheaval, reported on Wednesday that its annual net profits rose by 150% to 409 million euros (US$463 million).
“The strong performance of our front-line teams and continued cost control helped partly offset the impact of strikes at Air France in the first half of the year, as well as significant fuel headwinds,“ Benjamin Smith, the company’s new chief executive, said in a statement.
The Canadian businessman took over in September following Jean-Marc Janaillac’s sudden exit in a bitter dispute over salaries in the group’s French wing.
Fifteen days of strike cost the company 335 million euros, Air France said.
On Tuesday, Air France pilots voted by 85% in favour of a new pay deal, concluding a series of long employee-management negotiations.
Revenue growth last year was up in all business segments, with operating earnings coming in at of 1.3 billion euros, the Franco-Dutch airline group reported.
The group said it had carried more than 100 million passengers last year, making it the leading European airline for long-haul traffic.
Transavia, a low-coast subsidiary, carried 15.8 million passengers last year, an increase of 7.1% on 2017.
Full year 2018 capacity increased by 2.1%, mainly driven by the South American, North Atlantic and Asian networks, with respective growth of 8.6%, 3.0% and 2.1%, Air France-KLM said.
In 2019, the group will concentrate on “operational efficiency”, financial director Frederic Gagey told reporters.
“We can make a lot more money compared to last year,“ he said, adding that Air France-KLM would also be looking to renewing its fleet to replace some of its more fuel-guzzling planes. — AFP
KUALA LUMPUR, Feb 19 — AirAsia Group Bhd (AAGB) held a meeting with the Employees Provident Fund (EPF) today over its ongoing spat with Malaysia Airports Holdings Bhd (MAHB). Group chief executive officer Tan Sri Tony Fernandes said the group had…
KUALA LUMPUR: The intensifying airport tax dispute between AirAsia Group Bhd and Malaysia Airports Holdings Bhd (MAHB) could affect the Employees Provident Fund’s (EPF) investment income if it causes a negative reaction in the stock market, EPF CEO Tunku Alizakri Alias (pix) warned.
EPF, a substantial shareholder of both AirAsia and MAHB, owns about 10% and 5% shareholdings in the two groups, respectively.
“Our dividend payments are always derived from our investment income, (which is) driven from the market performance. So if the spat has impacted the market, then of course it will have an impact (on us) in terms of income,” Alizakri said at a media briefing on the EPF’s 2018 financial performance today.
“We are not directly impacted (from the spat) but we are impacted by the market performance of the stock counters,” he said.
Meanwhile, Alizakri confirmed that EPF has written to both parties expressing its concern over the dispute, saying that it is acting “just like a typical concerned investor”.
He disclosed that AirAsia has responded to EPF’s letter, without ela-borating on the details of the airline’s reply. However, EPF has yet to receive a response from MAHB.
“One of the parties will be meeting with us very soon. We are very happy with that … to explain the situation. We are looking forward to meeting with them,” he added.
Alizakri stressed that the retirement savings fund is concerned about the spat being brought up to the public, saying that it is not only bad for the two organisations but also bad for Malaysia as a whole.
“Because when you think about it, these are (two of) the biggest counters (in the local stock market), and also the face of Malaysia. AirAsia is an airline, the company that brings in tourists and business people. And MAHB, which is KLIA (operator), the first point of contact for foreigners that come into Malaysia.
“So we are naturally concerned that this disagreement has been brought into the public,” he said, adding that the letters were just to voice EPF’s concern.
“We are not in the position to go and arbitrate between these two. We are acting just like a typical concerned investor and we are hoping that they will be able to resolve this soon,” Alizakri said.
Last December, MAHB sued both AirAsia and AirAsia X for a total of RM36.1 million for refusing to collect the additional RM23 passenger service charges per passenger at klia2.
While MAHB stayed firm on its stance that the same rates should apply to both klia2 and Kuala Lumpur International Airport (KLIA), AirAsia argued that klia2 is a low-cost terminal and the charges levied should commensurate with the level of services provided.
The spat between the two seems to be far from over after MAHB turned down AirAsia’s offer of mediation, an attempt to resolve the airport tax dispute.
KUALA LUMPUR: The Employees Provident Fund (EPF), a substantial shareholder of both AirAsia Group Bhd and Malaysia Airports Holdings Bhd (MAHB), hopes the lawsuit between the two over passenger service charges (PSC) will be resolved soon, following a meeting with the retirement savings fund.
“AirAsia has actually responded (to EPF’s letter) and we are waiting for response from MAHB. We are looking forward to meeting up with them,” EPF CEO Tunku Alizakri Alias (pix) told reporters at a briefing here today.
“One of the parties will be meeting up with us very soon. We are very happy with that… to explain the situation,” he added.
Recently, it was reported that EPF had written to both parties expressing its concern about the dispute and suggested that it can be settled through negotiations.
Asked on the details of the letter, Alizakri said it is acting “just like a typical concerned investor”.
“We are concerned that the spat has been brought up to the public and it’s becoming a very public-spat. This is not only bad for the two organisations but also bad for Malaysia as a whole as these are the two biggest counters (in the local stock market),” he added.
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