Alexandre de Juniac Expected To Be Named To The Post

The board of Air France-KLM has voted to fire the company CEO amid declining revenues and increased scrutiny of the airline's safety culture. Pierre-Henri Gourgeon had been re-appointed to a new four-year term in the position just over four months ago.

His replacement may be a long-time civil servant, Alexandre de Juniac, and advisor to the French finance minister with experience in the aeronautics industry. He could take control of the airline sometime in November subject to review by a government ethics committee.

The New York Times reports that Air France-KLM chairman Jean-Cyril Spinetta will take the reigns of the airline until a new holding company structure can be put in place. Analysts told the paper that the firing of Gourgeon could be the first domino to fall in a major reorganizaton of Europe's largest airline when measured by revenue.

The plan was first reported Sunday by the French newspaper Les Echos. That publication reported that Gourgeon had been told Friday that he was going to be replaced.

File Photo

One of the incidents which may have contributed to the move was the June 2009 accident involving an Air France A330 in which all 228 people on board were fatally injured. Both Airbus and Air France are the subject of an ongoing investigation into the accident. An interim report by the French accident investigating agency BEA indicates that the pilots had not received training which might have been able to prevent the accident. The airline has ordered a top-down review of accident, saying it had properly trained its pilots and that the pattern of cockpit alarms on board the airliner was "misleading."

Another factor is likely the economic losses suffered by Air France-KLM during the recession, and the slowness of its recovery relative to other airlines. The New York Times reports that Air France-KLM showed a net loss of about $270 million, which the airline said was the result of pricing volitility for fuel, as well as other international factors beyond its control. While it has forecast a small operating profit for this year, it is far behind Lufthans and International Airlines Group, the parent of Bitish Airways and Spain's Iberia Airlines.

FMI: www.airfrance.us