* Air France KLM shares rise, stock up 150% in 2017
* To take Q3 charge of 311 mn euros
* KLM to make a one-off payment of 194 mn euros
* Lufthansa struck pensions deal this month
Air France KLM has struck a deal with its KLM pilot and cabin staff unions to resolve a dispute over pensions, the airline said on Monday, adding it would take a charge of 311 million euros ($366 million) in the third quarter as a result.
It will change to a defined contribution scheme from a final salary pension scheme and KLM will make a one-off lump sum payment of 194 million euros to the pension fund, Air France KLM said.
KLM pilots threatened legal action in 2016 if their demands for pension rises were not met.
The changes follow similar moves by other airlines, for whom pension scheme arrangements have been a source of tension with employees.
Lufthansa and its main pilots union signed a wide-ranging agreement on pay, pensions and conditions this month.
In September British Airways proposed the closure of a large pension scheme, angering trade unions representing workers who have taken industrial action this year in a continuing pay dispute.
Air France KLM shares rose 1 percent in early trading, making the stock one of the top performers on Paris' SBF-120 index, as analysts welcomed the pensions deal.
‘Crucially, this removes AF-KLM's exposure to future deficit payments for these schemes,’ analysts at brokerage Liberum wrote, although they kept a ‘sell’ rating on Air France KLM shares.
Air France KLM shares have jump by around 150 percent since the start of 2017, helped by progress on cost cuts and an upbeat outlook on ticket prices.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
UK mayors want new petrol, diesel car ban to start earlier
Spanish king's brother-in-law jailed over graft conviction
Van kills one, injures three at Dutch concert
Meghan's father sorry to have missed wedding
Weary Aquarius migrants step ashore in Valencia
Hobbit’s five armies clash in Czech forest
Prime minister under fire over NHS ‘Brexit dividend’ claim
Tory rebels against PM Brexit plans ‘could bring down govt’
Three people hurt in Moscow taxi incident to be discharged from hospital