Shares of Air France-KLM fell on Friday in response to unions disagreement with appointment of Benjamin Smith as company's CEO, Reuters reports. At the same time, Dutch pilots are getting ready for strikes over working conditions.

Unions representing workers of French company expressed discontent accusing group in handing control to foreigner as Smith has been working for Air Canada before.

Shares of Air France-KLM fell by 4%.

Smith will have to deal with serious labor conflicts within the company that already cost 335 million euro this year. Shares of group lost 36% in 2018.

Air France bought KLM in 2003, however, two companies have been operating separately.

In May Air France-KLM already announced profit cuts due to employees' strikes.

French government owns about 14% of the company, Delta Airlines anf China Eastern Airlines each own 8,8%.