Alexander Juniac (CEO of Air France-KLM)
The CEO of Air France-KLM considers, following the surprise announcement of his departure, having filled his contract by completing the turnaround “spectacular” of the group, although he acknowledged that his successor will have much work to bring it back at the economic performance of its main competitors. Alexandre Juniac nevertheless expresses some regrets concerning the pilots’ strike in September 2014 and the lack of progress in negotiations with the SNPL AF on the new strategic plan. Never mention, the CEO of Air France pilots accuse officials of not wanting to “take their responsibilities” to reach agreement on the future of Air France and denounced the union strategy “scapegoat” of rejecting other, responsibility for difficulties. With this blocking observation, Alexandre Juniac invites the Government and the legislature to consider ways to encourage “constructive social dialogue” in companies. Alexandre Juniac, which should remain in office until August 1, also intends to use the remaining time to ensure a transition “Smooth “, but also “without stopping and without deviating” of the fixed line.
the announcement of your next departure, it seems, took all the world by surprise … when have you made your decision and when did you report to the government?
the decision process of IATA, which has been managed so copy, culminated Tuesday at its Committee of Governors. And as I was not going to prejudge the vote of my peers, I could announce my decision very recently. In my case, I had made my decision in March, once acquired the announcement of the return to profit.
What have you motivated to leave the Air France-KLM management to that of the association of international air transport?
IATA is not well known to the French, but for air transport professionals IATA is a prestigious organization. It is an essential player in the field of aviation safety, technology standards, commercial, who discusses with States and intergovernmental organizations. For someone like me who has always been committed to the international dimension, aeronautics and air transport, this is an exceptional opportunity in the heart of the system. She came with the end of the mandate of the current CEO [Tony Tyler Ed] in June, so it was now and not in six months or in two years.
By Furthermore, Air France-KLM has made a huge way since joining the group in 2011. Through the efforts of 100,000 employees of Air France and KLM and dialogue with the social partners, we have managed a spectacular turnaround. Our results were up over 1 billion, we reduced our debt by over $ 2 billion, while continuing to invest over $ 1 billion to restore our service offering the best globally. The management team can be proud of that record, even if it is the result of everyone’s work, and I am not unhappy to be able to transmit to my successor a business that makes money, which is debt-free and has one of the world’s best products.
There is still much work to do to restore the competitiveness of Air France-KLM. You did not want to do?
Obviously there is still work to do. This will still be true from my successor. A company where there is nothing left to do is a dead company. So yes, there is still a big job to do. To keep the process of growth, we must return one of the world best in economic, financial and commercial terms. This is for the commercial part, but it is not yet the case for finance and the economy. We are in a giant industry, the results of which are 2-10 times higher than ours. If we do not have the same means they invest in, buy airplanes, recruit and train personnel, we will be downgraded. That is why we have started negotiations on how to improve our performance: to give us the means to grow at the same pace as the others. These negotiations resulted in KLM and ground staff of Air France, but unfortunately not with pilots and flight attendants of Air France.
The little progress in negotiations with the pilots he contributed to your departure?
If my departure can help to reach an agreement tomorrow, I’d be the first happy for the company! But we must end the culture of scapegoat. The Future of Air France relies on all of our shoulders, as well as those representatives of seafarers who must take responsibility, instead of accusing all our external evils, competition, government, president the company … We have always made the choice of social dialogue; however, it should not be an alibi for inaction, but the engine of development. For this we need interlocutors officials, who will want to move home. There and they have shown.
Some felt that the failures of social dialogue for eighteen months were related to your industry and ignorance culture …
But I’m in the aerospace and air for over twenty years! And I’ll be re-enlist for five years at the request of the largest global employers in the sector. What does it take to show my commitment to this sector? The blissful contemplation of the past; or the will to transform itself to meet the challenges of tomorrow? I know that in all the major airlines, pilots have considerable weight. And that is precisely why I am slaving to try to convince them.
Do you have the feeling of having failed to support the government ?
No. When there were problems at the strike of pilots and after the episode of torn shirts, the Prime Minister himself has given its full support to the company and the directions taken. Now the important thing is that the government take measures that will support the efforts of Air France and the French airline to remain among the world’s best. We have high social costs in a very competitive environment and labor law does not offer all the necessary flexibilities to adapt.
What actions do you expect from the government?
This could be, for example, a partial exemption from social charges on the model of maritime sailors. Or the possibility of developing fixed-term agreements, more adapted to a changing environment that the system of collective agreements of indefinite duration. At KLM, we have signed agreements for three years. This is already the case with the flight attendants of Air France. This allows to adapt to changes in the sector through negotiation with trade unions used to this system, rather than permanent conflicts. This is a subject that requires the legislature looks.
Do you have any regrets?
No is perfect. I think we could have avoided the conflict of 2014. We have underestimated the impact of the announcement of the creation of Transavia Europe, which has been misunderstood, especially by drivers. It helped to have a longer and harder strikes, especially unnecessary that we found an agreement, a few weeks later approved by pilots referendum. Yet it was a good project that we had to stop. The European Development Transavia has now taken another road, through a negotiated agreement with the Dutch drivers. We have perhaps not sufficiently explained the need to continue the transformation of the company, despite improved results partly due to lower fuel prices. If the position of the company has improved its position relative to its competitors has not progressed enough.
The announcement of a plan attrition two months before that of the return to profit was it not a mistake?
As of June 2015, the situation of the company was worrying. We were faced with a drop in unit revenue unexpectedly with an oil price that was not where it is today. And after was much better than expected, we did not know if it would last. This is why the Board of Directors has unanimously approved the implementation plan B if we do not manage to negotiate the conditions for implementing the plan A, what we tried to do until the end of the year. The reasoning of some trade union organizations, that improved the accounts would make unnecessary extra effort, is completely wrong and even suicidal for the company. I think the vast majority of drivers includes and I am surprised that their representatives do not share this understanding.
Relations with Dutch are also prone to tensions regular. How do you explain this?
It has been eleven years it lasts. This does not prevent the group to function and teams work well together. The most important is that the two main group of companies now both contribute significantly to the results. This was the main point of weakness and it is a vital asset that can be attributed to our team.
The appointment of a new CEO and proximity the presidential election will not they condemn Air France-KLM to immobility?
I do not think. Transform the plan has been launched in January 2012 in the middle of the presidential campaign. With a good project, no matter the period.
What would be the ideal candidate profile?
It takes a very international profile and also very customer oriented. It’s sticking to customer that we take the right directions. If he knows manage the relationship with the major shareholder [government] is also an advantage. That said, it is not necessary to be a specialist of the administrative mechanics for that. One thing is certain, the new boss will have to be a brave and tenacious reformer.
Do you have a possible candidate for the general meeting of May 19?
It is the intention of the Board of Directors. Make fast, it’s obviously better for the company. This will also depend on any constraints of the candidate. In my case, my responsibility will be to ensure that the governance bodies to function smoothly and without the house stops to advance or deviates from its path.
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