Air France-KLM decreases growth rate
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(WAPA) – According to the declarations made by Air France-KLM and experts’ opinions, the carrier is going through a difficult time, which is reflected in the lack of competitiveness and the decline in growth; it was recently announced that “In an uncertain economic environment, driven by lower economic growth and rising fuel costs, Air France-KLM group is forecasting a 3.40% reduction growth rate for winter 2011-12”.
Experts encourage the identification of internal differences within the two companies, especially the debt that Air France has, valued 1.48 billion euros, but at the same time stress that investors’ trust in the title determines its decrease rate.
Despite last year’s assuring statements done by the director general Pierre-Henri Gourgeon on a possible recovery, trade union leaders are now pointing their finger at directors. On the other hand, directors are asking employees to make an extra in order to remain competitive with European rivals, Lufthansa and British Airways, whose activities are expanding.
Even UBS has decided to reduce the target price of the Group from 7.95 euros to 5.50 euros.
