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Shares of Air France slump sharply amid deepening crisis

Air France shares dropped 14% in morning trading on Monday amid the latest problems at the troubled air carrier. It was the first time when shareholders had an opportunity to react to chief executive Jean-Marc Janaillac's dismissal and statements by France's economy minister.

Mr Janaillac's decision to retire came after personnel at the loss-making air company turned down a new pay deal and proceed their industrial action, aiming a 5.1% pay increase. Economy minister Bruno Le Maire noticed on Sunday that Air France could "disappear".

The French cabinet holds a 14.3% stake in the Air France-KLM parent group. Monday's strike became the 14th straight day of action.

Despite the latest events, the air carrier said it would be able to serve 99% of long-haul flights on Monday, 80% of medium-haul services and 87% of short-haul flights. The government's answer would become a trial of labour reforms initiated by French President Emmanuel Macron.

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