Air France-KLM Cuts Earnings for Third Time

Air France-KLM is experiencing significant financial difficulties, with earnings projections falling short by €1 billion compared to initial expectations. The airline is delaying orders for new, fuel-efficient jets due to cost-cutting measures, despite falling oil prices. In contrast, the airline industry is generally growing, with other companies like IAG making strategic acquisitions. Air France-KLM's struggles are exacerbated by a historic pilot strike and pension issues. Meanwhile, IAG has made a bid for Aer Lingus, which was initially rejected, but the move has impacted Aer Lingus's share price positively.

What is one of the main reasons Air France-KLM is delaying their new jet orders?

• To increase their fleet size

• Due to a lack of pilots

• To cut down on costs

• Because of rising oil prices

What was a significant event that negatively impacted Air France-KLM's business in 2014?

• A new government regulation

• A merger with another airline

• A two-week pilot strike

• A major fuel price increase

What issue did Air France-KLM face with their pension plans in 2014?

• They reduced pension benefits

• They introduced a new pension scheme

• The positive pension numbers game did not work out

• They had to increase pension payouts

Which company made a bid for Aer Lingus?

• IAG

• Air France-KLM

• Delta Airlines

• Lufthansa

What was Aer Lingus's response to IAG's initial bid?

• They accepted the offer

• They countered with a higher bid

• They ignored the offer

• They rejected it as preliminary and non-binding