Decision against privatisation of Air France leads to chair's resignation

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The resignation of Christian Blanc, the chair of the Air France group, was announced in September 1997, following the Government's rejection of a wholesale privatisation of the airline.

Christian Blanc, the chair of the Air France group, announced that he was to resign on 5 September 1997. He was appointed in 1993 by the Balladur Government to oversee the economic restructuring of the airline to prepare the ground for privatisation. The resignation is the final blow in a power struggle in which Mr Blanc was pitted against the Government, which is the majority shareholder in the company. The current Transport Minister,Jean Claude Gayssot, declared that although he was in favour of a sell-off of capital to private investors, he was totally opposed to the privatisation of Air France and to the state relinquishing its majority capital holding in the company. The Jospin Government has, in fact, recently announced that it would consider opening up to 49% of Air France's capital. Under its plan, part of the capital opened up would be allocated to company employees and part to certain foreign airlines to enable essential partnerships to be formed. Mr Blanc's strategy was based on a different distribution of capital: a third was to be retained by the state, which would no longer be the majority stockholder; a third offered to employees; and a third to private investors. He therefore interpreted the Government's stance as a rejection of the privatisation option for the airline.

The Air France chair's resignation sent shock waves through the ranks of the company. Mr Blanc had indeed succeeded in strengthening the financial position of the company which had just moved into profit. The social climate had improved since his nomination in 1993 and he had intended to use the next five years to consolidate the recovery and to create 5,000 new jobs. The trade unions reacted in the same way at the news of his resignation. The CGT (Confédération générale du travail) was in favour of the opening of capital: "Air France's future must take precedence over any ideological considerations", while Force Ouvrière also supported the policy adopted by Christian Blanc and declared that his option "had not been designed to benefit capitalists".

The former chair of Air Inter, Jean Cyril Spinetta, will succeed Mr Blanc at the helm of Air France. His appointment has been greeted very favourably by the unions. The new head of Air France has in the past set himself apart because of his knowledge of the air transport industry, his determination with regard to the Transport Ministry's positions and his sense of social dialogue.