Air France, the French flag carrier, announced an agreement was reached with the pilots union to resume flight operations after a 14-day strike, which reportedly cost the airline more than €280 million (~$356 million).
“Air France welcomes the end of the strike action, which it called for firmly and repeatedly. The strike has been costly and damaging. It has lasted too long,” the companys statement read. “The Company deeply regrets that the balanced and reasonable protocol to end the conflict proposed by Management has not been signed by the unions.”
Although the company was quick to welcome an “end to the conflict”, a spokesman for the SNPL pilots union said the strike was ending so negotiations could “continue in a calmer climate”.
The airline will operate almost 60% of its scheduled flights on Monday, September 29th, with a gradual return to full operations within 2-3 days.
The breakthrough follows intense talks over the weekend, with the company rejecting a proposition to appoint an independent mediator, while Management also proposed a protocol for an end to the crisis, which met “the pilots’ most specific expectations”.
Although the crisis has not been solved, the company declared it still looks to develop its model in cohesion with its strategic plan “Perform 2020”.
“The end of the conflict strengthens the Company’s determination to develop its business model. Air France is now totally mobilized to regain its customers’ trust, restore serenity among staff and promote corporate cohesion,” the statement read.
Air Frances “resolution” comes as Lufthansa, another strike stricken European airline saw its shares tumble after pilots union declared plans to strike on Tuesday. The company just recently shook off a major action by pilots, who, like their French counterparts, protested to keep work conditions favorable.
Air France KLM SA was up 0.63% to trade at €7.54 (~$9.57) per share at 12:21 GMT, valuing the company at €2.26bn (~$2.87bn). The stock is up 4.31% on an annual basis, and is projected to rise further. 25 analysts at the Financial Times, who offer 12-month price targets for Air France KLM SA have a median target of €9.50, with a high estimate of €12.00 and a low estimate of €2.75. The median estimate represents a 26.84% increase from the last price of €7.49.
Do you think weve seen the last of pilots strikes at Air France for now?
Share your thoughts in the comments below.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
