2023-04-26 09:05:01
Air France-KLM is doing much better and the company’s general manager, Ben Smith, is taking advantage of it. He will receive, for 2022, up to five million euros, between a fixed part, benefits in kind, but also bonuses, shares and variable compensation, conditional on objectives. Among these objectives, there was the reimbursement of aid and loans granted by the State to prevent Air France from going bankrupt at the time of the Covid.
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Air France-KLM has reimbursed everything and after abysmal losses in 2020 and 2021, the group even made a profit of 728 million euros last year. Result: it’s bingo for Ben Smith, who will therefore triple his remuneration this year.
The general assembly, which will be held on June 7, must already give the green light. The shareholders, including the French State, will only be able to oppose the variable part, ie two million euros of shares. Because the rest of Ben Smith’s remuneration is fixed by contract. However, it may tickle, because shareholders have not received dividends for 10 years. The company, even outside of Covid, was not doing very well and the value of the shares did not return to the pre-crisis level. In the Netherlands, the salaries of the managers of Air France KLM are already making people cringe.
Inflation of the ticket price at low cost
In public opinion, it can also be debated. Especially at a time when the French see the prices of plane tickets soar. Admittedly, there is inflation, but according to the civil aviation directorate’s price index unveiled last week, fares are on average 25% more expensive than a year ago. It depends on the destinations: 40% increase for flights to Asia, 10% for North America.
Low-cost airlines have also increased their prices, especially they are catching up on the extras, all these options that are billed to you in addition: the choice of your seat or luggage. A simple suitcase in the cabin and more costs up to 20 euros on a Ryanair or Easyjet flight. Air France does not do better for its low-cost company Transavia: a 20kg piece of checked baggage is for example charged almost 50 euros on a Paris – Athens.
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